How Is Investment Real Estate Handled in a Texas Divorce?

 Posted on July 08,2024 in Complex Property Litigation

A divorce is challenging enough, but when the issue of investment real estate arises, things can become even more complicated. During a divorce, your assets and property will be subject to division, and this will include any investment real estate you and your spouse purchased during your marriage. To understand how investment property might be divided in your divorce, and to ensure your interests are protected throughout the entire divorce process, speak with a skilled Texas property division attorney.

How Is Real Estate Divided in Texas?

Texas is a community property state, which means that most property acquired during a marriage is seen as equally owned by both spouses and will be subject to division, even if only one spouse’s name is on the paperwork.

However, if you invested in real estate before your marriage, or you used funds that were separate from your marital funds (such as an inheritance) to purchase real estate during your marriage, you may not be required to divide that property.

When looking at the ownership of investment real estate in your divorce, several factors will be considered, including when the property was bought, whether separate property was used to pay for it, and, if separate property was used to pay for it, whether that separate property later became community property. A "just and right" division is required in Texas, and that may not mean your real estate property is split equally down the middle.

Potential Resolutions to Real Estate Division in Your Divorce

If you want to avoid dividing your investment real estate as part of your divorce agreement, you may be able to negotiate a settlement with your spouse. Spouses are encouraged to create a property division settlement on their own whenever possible, and courts typically only intervene if spouses cannot agree about what to do. 

Potential property division resolutions that you could explore include:

• Selling the property and splitting the sales amount

• Trading ownership of your investment real estate for a marital asset of equal value

• Paying your spouse for the investment he or she made in your separate property to retain full ownership

• Refinancing the property to make one spouse the sole owner

• Keeping the property in joint ownership

That being said, if your spouse refuses to agree on a real estate property division, you may need to litigate the dispute in court. This is a lengthy process, and you will need a lawyer to help protect your rights and interests.

Contact an Austin, TX Property Division Lawyer

Dividing your investment real estate during a divorce is stressful, and you can benefit from the guidance of a skilled Travis County, TX property division attorney. At Powers Kerr & Rashidi, PLLC, we are knowledgeable about property division matters, and we will fight for your right to maintain your real estate holdings.

Call 512-610-6199 for a consultation.