Less Common Assets in Texas Divorces

 Posted on December 23, 2024 in Complex Property Litigation

When assets are split up in a contested divorce in Texas, you might just expect to be dividing up your shared wealth, the marital home, and shared possessions. However, you may find that the process of asset division is far more complicated. Your marital estate can extend well past what you can see in front of you, and you could lose more than you anticipate when taking your divorce to court. 

A Travis County, TX family law attorney can advise you during the process of complex property division and advocate for your rights in the courtroom. At Powers Kerr & Rashidi, PLLC, our lawyers have real trial experience with contentious divorces, and we will use the full breadth of our legal knowledge to secure your rights to your property.

Shared Businesses

You may not think of a business as a traditional asset, but the courts are sure to scrutinize your company to see if it qualifies as marital property. As with any other asset, a business is more likely to be labeled as your own separate property if it was established before the marriage or if it was passed down to you as a gift or inheritance. However, business ownership in a marriage can easily become commingled if you invest in the business using marital funds or if your spouse contributes towards its growth. In that case, you may be responsible for compensating your spouse, whether by maintaining joint ownership, buying out his or her interests, or selling the business and splitting the funds.

Investment Real Estate

You likely know already that your shared residence with your spouse will have to be split up in a divorce. If you own any additional rental properties, vacation homes, or other real estate, these too will have to go through the process of asset division. If you owned a piece of real estate before marriage, but refinanced it with your spouse’s name on the title, the property may be considered a marital asset. Even if this is not the case, you may still have to reimburse your spouse for any contributions to the property.

Debts

If you go into a contested divorce unprepared, finding out that you are responsible for certain debts can come as a shock. Any debt accumulated during the marriage could be considered both your and your spouse’s joint responsibility, even if you had nothing to do with spending the money. Shared credit cards, mortgages, and loans are all common sources of marital debt that you may have to keep paying after a divorce. Texas courts refer to the principle of "just and right" distribution in the division of assets, so you may be responsible for a smaller portion of the debt if your spouse incurred most of it, but the distribution of debt depends on many factors. 

Meet With an Austin, TX Family Law Attorney Today

Splitting up property at the end of a marriage is complicated. If your divorce goes to trial, it is critical that you seek out a legal representative who can protect your interests in the long term. At Powers Kerr & Rashidi, PLLC, our Travis County, TX divorce lawyers are here to help you achieve your goals, as we give every case our individual attention. Call our offices at 512-610-6199 for any inquiries.