Real Estate Assets and a Divorce
If you plan to file for divorce, there will be many personal and financial details to sort out with your spouse. Some of these may relate to difficult questions about family, such as who will have custody of the children and what will be the terms of alimony. Additionally, a divorce settlement will address assets and property. A skilled divorce attorney can advise you about how to divide assets, as well as negotiate on your behalf and represent you during mediation and trial.
Texas: A community property state
Individual states have different procedures for dividing property during a divorce. Texas, along with nine other states, is considered a community property state, which means that assets and debts acquired during a marriage are split almost equally between spouses. There are many items that could be considered community property:
- Real property
- Stocks and bonds
- Savings accounts
- Automobiles
- Retirement benefits
- 401(k) and IRA accounts
- Life insurance
- Copyright royalties
- Rental income
- Debts
Separate property
Not all property in community property states is subject to equal division during a divorce. Some property is deemed separate because it clearly belongs to only one of the spouses:
- Assets acquired by one of the spouses before the marriage, providing that it was kept separate from other property acquired during the marriage
- Income from property investments that were not shared (i.e., commingled)
- Property inherited from your family that was not commingled
Equitable distribution states
The alternative to community property, which is practiced by most states, is equitable distribution. For divorces in equitable distribution states, many factors are taken into consideration before deciding how to divide the property:
- The length of the marriage
- The standard of living for spouses
- The income and potential earnings of each spouse
- Tax consequences
- Any written agreements
Equitable distribution states take a more holistic approach than community property states for deciding how to divide assets and debts. If you are considering divorce and are unsure about how this might affect your personal financial situation, contact an experienced lawyer in your state.
This article has been provided courtesy of Divorce Attorney:
Michelle Goodwin
5430 Glen Lakes,
Dallas, Texas 75231
Toll-Free: 888-393-7124
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