What happens to the homestead exemption in a Texas divorce? It stays with the home only as long as an owner lives there as their principal residence. The spouse who keeps and lives in the house generally keeps the exemption. The spouse who moves out can claim one on a new home, but nobody gets two at once, and the paperwork has to catch up with the decree.

This matters more than it used to. Since Texas voters approved Proposition 13 in November 2025, the school district homestead exemption is $140,000 of value, starting with the 2025 tax year. Homesteads also get a 10% annual cap on taxable value increases. Lose the exemption by mistake and the escrow payment can jump in a year when money is already tight.

Who keeps the homestead exemption after a divorce?

Generally, whoever owns the home and lives in it. If one spouse moves out and the other stays, the exemption keeps working for the one who stays, at least while both names are still on the title. When co-owners don't all live in the home, though, the rules get technical, and appraisal districts handle the details case by case. Call yours and ask how it treats a co-owner who has moved out, before you assume.

Once the decree awards the house to one spouse and the deed is recorded, check whether the appraisal district needs a new application in that spouse's name. Many do when ownership changes.

Can the spouse who moves out get a homestead exemption on a new home?

Yes, on a home they buy and live in. Since January 2022, buyers can receive the exemption in the same year they buy, prorated for the part of the year they owned it, as long as the previous owner didn't already get it that year. The application is due before the first anniversary of the purchase. Just don't claim it while you're still claiming the old house.

One home, one exemption.

What about the over-65 or disability exemption?

This one gets complicated. The over-65 exemption and its school tax ceiling are tied to the qualifying owner. If that spouse is the one moving out, the remaining spouse may lose both, and the surviving-spouse rules that protect widows don't apply to divorce. Run the numbers on the taxes without the ceiling before you agree to keep the house, especially if you'll be paying it on one income. My guide to the hidden costs of keeping the marital home walks through the rest.

A checklist for the property tax side of a divorce

  • Decide who will live in the home on January 1 of next year, and plan the exemption around it.
  • Record the deed after the decree, then file any new application the appraisal district requires.
  • The spouse who stops living in the home should notify the appraisal district in writing before the next May 1.
  • The spouse who buys again should apply on the new home before the first anniversary of the purchase.
  • Missed it? Late applications can generally be filed up to two years after the delinquency date, usually February 1.

For the bigger decision, start with Can You Keep the House After Divorce? and how a buyout and refinance work. Protecting both spouses' credit during the transition matters too, and my divorce real estate page explains how I coordinate with attorneys and lenders.

Frequently asked questions

Who gets the homestead exemption in a Texas divorce? Generally, the owner who lives in the home as their principal residence. The spouse who keeps and lives in the house usually keeps it, and the appraisal district may require a new application after the deed changes.

Can I have two homestead exemptions during a divorce? No. You can only claim a homestead exemption on your principal residence. Stop claiming the old home before you claim a new one.

Can I get a homestead exemption the same year I buy? Yes. Since 2022, Texas buyers can receive the exemption in the year they buy, prorated, if the previous owner didn't receive it that year. Apply before the first anniversary of the purchase.

What happens to the over-65 exemption after a divorce? It's tied to the qualifying owner. If that spouse moves out, the remaining spouse may lose the exemption and the school tax ceiling. Check with your appraisal district and attorney.

How much is the Texas homestead exemption? The school district homestead exemption is $140,000 of value, starting with the 2025 tax year, after voters approved Proposition 13 in November 2025.

This article is general information, not legal or tax advice. Talk with your family law attorney and your county appraisal district about your situation.

Last updated November 2026