Marital Property
Valuation &
Property Division

Dealing with Complex Property Division During Divorce

Married couples acquire assets and other property during their marriage, which are referred to as marital property. If the couple has been married for decades, the amount of property might be substantial—their primary residence, vacation homes, investments, savings and retirement accounts. What happens to that property when they divorce? Will the court divide it between them equally? What if one spouse helped support the family while the other took college courses and got a degree? What if a spouse received a large inheritance or gift from parents? What if going into the marriage one of the spouses had already established a successful business?

There are many factors to consider, and property division can be complex. Having a divorce lawyer with extensive experience in dealing with these types of situations can be invaluable.

What Does Characterization of Property Mean in Relation to Divorce?

Property basically falls into two categories: separate property and marital (also called community) property.

Separate Property

Separate property is property acquired prior to marriage. Examples include:

  • courthouse-symbol  Inheritances (whether through a will, trust or descent)
  • courthouse-symbol  Gifts to one spouse
  • courthouse-symbol  Personal injury settlements or awards

Spouses can also establish property as separate through a prenuptial or postnuptial agreement. It is vital that spouses do not co-mingle their separate assets with marital assets. This complicates characterizing property. Otherwise, the court might no longer view it as separate property. The court presumes all property is marital, and it is the spouse’s responsibility to prove that the property is separate through clear and convincing evidence.

Marital Property

Marital property is property acquired during the marriage. Courts view these assets as jointly owned or community property. Examples of marital property include:

  • courthouse-symbol  Real estate (family homes, vacation homes or investment real estate property)
  • courthouse-symbol  Vehicles
  • courthouse-symbol  Investments (stocks and bonds)
  • courthouse-symbol  Retirement accounts (pensions, 401Ks, IRAs)
  • courthouse-symbol  Boats
  • courthouse-symbol  Home furnishings
  • courthouse-symbol  Jewelry
  • courthouse-symbol  Art collections
  • courthouse-symbol Joint debt (credit card debt, student loans, mortgages, leases, home equity lines of credit, 401K loans)
  • courthouse-symbol  Family owned business

 

Factors Involved with Property Division

Tracing Separate Property Assets

We work with financial experts to trace a client’s property. This involves establishing a paper trail that follows the property from acquisition to the time of divorce. The tracing process shows how separate property might have changed form. Perhaps you exchanged it or sold it during marriage. For example, let’s say you owned a house that you inherited from your parents. You sold the house and the proceeds went into your bank account. Then you took the money to invest in a start-up company that you founded in your name.

Where tracing separate property assets becomes complicated is when you commingle it with marital property. Let’s say you deposited the house sale proceeds in a joint bank account that you shared with your spouse. You would need clear and convincing evidence to prove that the proceeds in the joint account did not become community property.

Your attorney and tracing experts can help you gather documentation to trace your separate property.

Valuation

Property or assets valuation is another vital aspect of property division. For many couples, their family home is the largest asset they own. However, this may not be the case for couples with high net worth. The best way to assess the value of your home is through an appraiser. The appraisal takes into consideration the following:

  • courthouse-symbol  Size of land the home resides on
  • courthouse-symbol  Square footage of the house
  • courthouse-symbol  Number of bedrooms
  • courthouse-symbol  Comparative value on the market
  • courthouse-symbol  House condition and repairs needed

Valuation might also play a key role in assessing art, collectibles, jewelry, businesses and other valuable assets that could be considered community property.

Complex Property Division

Texas is one of nine U.S. states that is classified as a community property state. What does this mean? It means that courts view community property as co-owned and divide it between the spouses. However, it does not necessarily mean that the division is 50/50. Texas courts base property division on what is “fair and just.” Until the divorce is final, community property remains intact as jointly owned. Factors that judges consider when ruling on property division include the spouses’:

  • courthouse-symbol  Children
  • courthouse-symbol  Spouses’ age, health, education
  • courthouse-symbol  Employability, ability to pay
  • courthouse-symbol  Marriage length
  • courthouse-symbol  Fault for the marriage breakdown
  • courthouse-symbol  Fraud (spending/hiding assets)
  • courthouse-symbol  Property liquidity
  • courthouse-symbol  Extent of debt
  • courthouse-symbol  Amount of separate property
  • courthouse-symbol  Taxes
  • courthouse-symbol Attorney’s fees
  • courthouse-symbol  Education

We can help you with property division

Whether your issues with property division are straightforward or complex, our firm can help. You can rely on our considerable skills, knowledge and experience along with our access to a network of financial experts. We strive to make the process easier for you and help you reach your objectives.

Call 940.566.0606 to schedule an appointment.

Family Law

Divorce

Asset Protection/Divorce Planning

Divorce Process

Business Owner Divorce

Child Custody

Visitation

Modifications

Marital Property Division

Mediation

Prenuptial & Postnuptial Agreements

Reach out to us

Attorney Chrysandra S Bowen

Please check below for SMS text consent

1 + 14 =

DTX Family Law

525 S. Locust Street, Ste. 100
Denton Texas 76201
Phone: 940.566.0606