Selling

Should we sell before or after the divorce is final?

Answered by Allen Markel, REALTOR®, Texas Premier Realty · Published September 26, 2026

Short answer

Every situation is different. I lean toward selling before it is final, and your attorney advises on timing. Both paths are used. Texas courts may not grant a divorce before the 60th day after the suit was filed, with limited exceptions (Family Code Sec. 6.702), so a sale can close before or after the decree. Selling first turns the house into cash before it is divided; waiting lets the decree decide who keeps it. A sale during the case needs both spouses' signatures and compliance with any temporary orders. I can help with pricing and timeline; your attorney advises on timing.

Selling before the decree means the house becomes cash that the agreement or decree then divides. It can end carrying costs and keep the asset from being fought over, but a sale during the case must respect temporary orders and needs both spouses' joinder for a homestead (Family Code Secs. 6.501, 6.502, 5.001). Waiting for the decree lets the court or your settlement decide who keeps the house, which may matter if one of you wants to stay. In that case the other spouse's share may need to be paid out through a refinance or a lien secured under the decree, which is covered in the buy-out question.

Section 6.702 sets a floor: the court may not grant a divorce before the 60th day after the suit was filed, except where it finds certain violence-related circumstances. It does not say how long the case will last after that.

Tax consequences differ by timing and filing status, and that is a CPA question; the IRS explains the main home sale exclusion in Publication 523.

A sale has its own clock. The TREC contract fixes a closing date, and the option period, title commitment and loan approval all run inside it (Form 20-19, Paragraphs 5, 6B and 9A). If the divorce papers, temporary orders or settlement terms change while the house is under contract, the parties can amend the closing date in writing, but both spouses and the buyer must agree.

The practical rule I follow is: the divorce decides who decides; the contract decides when. Before I list, I ask that both spouses sign the listing agreement and that both attorneys know a sale is planned. Then I build a timeline that leaves room for the negotiation over the buyer's repair requests and for any court dates.

If you tell me your target window, I will work backward from it. Whichever order you choose, ask your attorney to confirm in writing how the proceeds will be held and released, so that the closing does not stall.

What I tell my clients

Every situation is different, so I cannot give you one definitive answer. I lean toward selling before the divorce is final. That comes from experience, not from clinical advice, because I am not a psychiatrist. Divorce is usually devastating, and the sooner you start the next chapter and get a foot in a new door, the less stress you carry. Not knowing where you will live or how it will work makes the rest of the divorce, and your life, harder until it is solved.

From a market perspective, timing is not the issue. You have already committed to it, so rip the band-aid off.

We can get the house sold and the money in hand up front, and do it so you get market value and are not pressured into a loss just to be done. The judge tells the title company how to disburse the funds, and your attorney and the court decide how it is split. I do not divide the money or give legal advice. That money is what gets you into the next door, whether a rental or a purchase.

The house can also become an anchor. When spouses separate, finances get tight and carrying the mortgage gets difficult. Getting out from under it lets each of you move to the next living situation.

Other paths exist. One spouse can buy the other out and keep the house, which may only mean removing a name, or one of you can re-purchase later. For many people, getting the house sold and the money in hand is the cleanest solution. I also offer Trade-In, which works the way trading in a car does: you use your available equity to buy your next home before you sell your current one (how Trade-In works). Before you list, talk to a Texas divorce attorney, because a homestead needs both spouses' signatures.

Common follow-up questions

How soon can a Texas divorce be granted?

Not before the 60th day after the suit was filed, under Family Code Sec. 6.702(a), with exceptions in (c) for certain violence-related findings. Longer is common; the statute sets only a minimum.

Can I sell the house before the divorce is final?

Possibly, if both spouses join and no temporary order prohibits it. Family Code Secs. 5.001, 6.501 and 6.502 are the sections to discuss with your attorney.

Does selling first change the taxes?

It can. The IRS main-home exclusion has ownership and use tests and different amounts by filing status, described in Publication 523. Ask a CPA about your facts.

Sources

Talk it through with Allen

A short call can turn a general answer into one for your address, your timeline and your numbers.

Call (832) 709-2540

Should we sell before or after the divorce is final?

Short answer

Common follow-up questions

Sources

Talk it through with Allen

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