Dividing Vacation Properties

 Posted on November 14,2018 in Complex Property Litigation

Divorcing couples with unique, diverse, or especially valuable assets face a host of unique issues. For instance, many high asset divorces require couples to decide the fate of multiple properties, including not only the family home but also vacation homes and investment properties. This can be a complicated process, so if you are going through a divorce and have been unable to come to an agreement about who will retain ownership of one or more vacation properties, it is important to contact an experienced high asset divorce attorney who will aggressively represent your interests, whether during negotiations or in the courtroom.

How Are Assets Categorized During Divorce in Texas?

Texas is a community property state, which means that only assets that were acquired during a marriage must be divided in the event of divorce. When it comes to real estate, this is true regardless of whose name is on a title or deed. Unlike community assets, separate property is any property that was owned by either spouse before the marriage took place. The only exceptions to these rule apply in cases of inheritance, in which case, a person’s assets can be considered separate property even if they were acquired during the marriage.

Vacation Homes as Community Property

Under these rules, whether a couple’s vacation home needs to be divided upon divorce would depend on when it was purchased. If it was acquired during the marriage, both parties would have rights to a share in the property. This could take the form of one spouse retaining sole ownership of the family home, while the other took up residence in the vacation home. Alternatively, the couple could decide to sell the property and divide the proceeds.

When a couple cannot come to an agreement about the fate of a vacation home, a family court will be forced to intervene. In these scenarios, courts often require the parties to sell the property or to refinance it in one spouse’s name. If, however, the property was purchased with an inheritance or prior to the marriage, a court could decide to leave ownership in the hands of the original recipient or purchaser.

Out of State Properties

It is not uncommon for high asset couples to own vacation properties that are in a different state than their own primary residence. Fortunately, this doesn’t have to overly complicate how a vacation property is distributed, as judgments issued by a family law court will hold sway anywhere that the state has jurisdiction over the couple. This is true even if the family laws of the state where the vacation home is located are different than in Texas, which means that the division of both a beachside getaway in California and a cabin in New Hampshire would be governed by the Texas divorce decree.

Find an Experienced High Asset Divorce Attorney

Please call Powers Kerr & Rashidi, PLLC at 512-610-6199 to speak with a dedicated Round Rock high asset divorce attorney. A member of our legal team is prepared to begin working with you on your case right away.

Source:

https://guides.sll.texas.gov/community-property