Will I Have to Sell My Property During the Texas Divorce Process?

 Posted on June 27,2021 in Complex Property Litigation

Texas law treats most assets acquired during a marriage as community property, meaning that both spouses have an ownership interest. If you are getting divorced, you may be concerned that this means that you will have to divide all of your assets in half, possibly even requiring you to sell some of your property to make this possible. You should know that although there are times when selling your property is necessary or desirable, there are often alternatives that may better suit your needs.

How Is Property Divided in a Texas Divorce?

Understanding Texas laws regarding the division of marital assets can help you determine whether you may need to sell some of your property. Texas courts operate under a general rule requiring the “just and right” division of community property. If the decision is left up to the court in a contested divorce, you may be ordered to sell property to achieve a just distribution. However, you can also negotiate a fair agreement with your spouse that minimizes the amount of property that must be sold.

Selling Your Home

The decision of whether or not to sell your home largely depends on whether you or your spouse wants to continue living there, as well as whether either of you can afford it on your own. Selling may be necessary if you are unable to work out an agreement with your spouse, if the mortgage and upkeep would be too much of a burden, or simply if neither of you has a compelling reason to stay in the house. If you do need to sell, your divorce resolution can establish the terms for dividing the proceeds after any remaining mortgage balance has been paid.

Selling Your Business

Selling a business is often more complicated than selling a home. Many small businesses and professional practices have little value apart from their owners, and it can often be difficult to find an interested buyer. Forcing a business owner to sell their business can also severely impair their income and earning abilities. For these reasons, Texas courts often prefer to keep businesses intact rather than ordering a sale.

Selling Your Investments

If you have substantial assets invested in stocks, bonds, and mutual funds, you likely know that selling them at an inopportune time can result in large losses, trigger excessive capital gains taxes, or prevent you from achieving your long-term investment goals. Rather than liquidating your investments, you may be able to pursue an agreement in which you and your spouse fairly divide your shares.

Contact an Austin, TX Property Division Lawyer

At Powers Kerr & Rashidi, PLLC, we understand the financial concerns you are dealing with during your divorce. We can help you review your assets and develop a strategy to protect them and avoid having to sell them against your will. To speak with one of our experienced Austin divorce attorneys, call us today at 512-610-6199.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm