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Division of investment properties in a Texas divorce

Division of investment properties in a Texas divorce

On Behalf of | Jun 6, 2023 | High-Asset Divorce |

A divorce can be an emotionally taxing experience. Adding to the emotional toll is the complex task of dividing assets, especially investment properties. These assets not only have significant financial value but also often hold a great deal of emotional attachment.

In Texas, a community property state, the division of assets during a divorce follows specific guidelines.

Community property

According to Texas law, all assets and debts acquired during the marriage are community property. This means they belong equally to both spouses. This includes investment properties bought during the marriage, regardless of whose name is on the title.

Investment property valuation

Before dividing investment properties, they need a proper valuation. This often involves real estate appraisers who assess the current market value of the property. It also includes considering any mortgages or liens against the property, which will reduce the overall value.

Property division

After valuation, couples have several options for dividing investment properties. They may choose to sell the property and divide the proceeds. Alternatively, one spouse may buy out the other spouse’s interest in the property, thereby becoming the sole owner.

Another option involves one spouse keeping the property, but compensating the other spouse with assets of equal value. This often occurs when one spouse has a stronger emotional attachment to the property or a vested interest in maintaining ownership.

Effects of prenuptial and postnuptial agreements

If a couple has a prenuptial or postnuptial agreement in place, this agreement could influence the division of investment properties. These agreements often contain stipulations about how to divide assets upon divorce, and courts usually respect these agreements.

Dividing investment properties in a Texas divorce is a complex process that involves working toward a fair and equitable division of assets.