In the event of a Texas divorce, real property may be considered joint ownership or separate property.
Any real property purchased during the marriage, regardless of its name, will be considered joint and divisible property by the court. Any real property that was owned by either spouse prior to marriage is considered the spouse’s separate property and will not be divisible.
Exceptions to the rule
However, there are many exceptions to these general rules. See below the issues that sometimes arise in our high net worth divorces:
Did you or your spouse buy a house before marriage but while dating?
Texas traces the beginning of the Title Doctrine. This means that the court will consider the time of purchase of the property to determine its characteristics. If a home was purchased before marriage, it is considered a separate property. However, the other spouse is likely to have a claim to repayment as shown below.
Did you or your spouse sign a bond or refinance the property during the marriage?
This is amazing could Change the description for that property.
Did you or your spouse use community funds (ie, income earned from work during marriage) to make mortgage payments on a separate ownership home?
If so, the other pair could He is entitled to claim compensation for the amount equal to the reduction in principle on the loan.
Were improvements or fittings added to the home of the detached estate during the marriage?
Fittings and improvements will retain the same properties as the base property; However, hmm could be subject to a reimbursement claim from the non-owning spouse.
What if you or your spouse purchased property in a state other than Texas?
Property acquired by the spouse while residing in another state is considered separate property (or, conversely, community property) if it would have been considered separate property (or, conversely, community property) had the spouse been a resident of Texas at the time of its purchase.
What if you or your spouse own rental property purchased before marriage?
That property will be considered the spouses’ separate property, but the rent obtained during the marriage is considered joint property.
Valuation disputes with real estate and companies
In addition to characterization and reimbursement issues, high net worth divorces can also include valuation disputes.
If the two parties can agree on the value of the property, the courts will generally accept that value and divide the property equity in the home. Oftentimes, however, a spouse who wants to keep the property will have an incentive to reduce the value of the property, and a spouse who does not want the property will have an incentive to value the property higher. In these cases, the courts will consider valuations, property tax values, and values of other similar homes sold in the area, as well as the testimony of private parties.
A business appraisal expert is often needed in high net worth divorce cases. There are many ways in which a business can be evaluated and valued by the courts, depending on the type of business, business structure, involvement of the parties etc. Interests are protected.
As you can see, the division of property can be very difficult in the case of a divorce with a high net worth. Protecting your assets is our number one priority.