Homesteads in Divorce

• Texas law only allows for one homestead per family. However, if a couple who previously shared a homestead gets divorced, each spouse can claim a separate homestead. This benefit can have huge implications if the family previously shared multiple homes but has significant marital debt. For example, when the couple was married, only one of the homes was protected by the exemption, but at divorce, one spouse can claim one home, while the other spouse claims the other. Both homes are then insulated and placed outside of the reach of the couple's creditors.
  
  

Types of Homesteads

• All homesteads in Texas are classified as either urban or rural. An urban homestead cannot exceed one acre. A rural homestead, however, can be up to 200 acres for a couple or family, but only 100 acres for a single adult. At divorce, both parties would have to claim a portion of the rural homestead to keep it completely exempt from creditors if the rural homestead exceeded 100 acres. Additionally, there is no value limit on urban or rural homesteads, just a size limit.
  
  

Sale or Conveyance

• The Texas homestead law also prevents one party from trying to sell a homestead out from under the other party. Specifically, Chapter 5, Section 5.001 of the Texas Family Code, expressly prohibits one spouse from selling, conveying or encumbering a shared homestead without the other spouse's authorization, with some limited exceptions in unusual circumstances such as disappearance or abandonment by the other spouse.
  
  

Division of Property

• The Texas homestead laws are not related to the division of property at divorce. Rather, Texas homestead laws were created to ensure single adults and families in Texas have a home that is insulated from the reach of creditors. Allocation of property in a divorce is decided outside and without consideration of Texas homestead laws.