Experienced Texas Property Division Lawyer
Texas is a community property state in which courts strive to divide marital property evenly (not necessarily equally) between spouses. Assets that were acquired during the marriage count as marital property, regardless of which spouse obtained or earned them.
I am attorney Ehren Stuart Ezzell, and I know how complicated property matters can be in a community property divorce. From my office in Austin, The Ezzell Group, PLLC, can help with complex property division. I provide 24-hour phone access and can answer questions and provide information at any time. With my experience and commitment, you can navigate the family court process informed and ready to guard your property interests confidently.
What Are The Common Challenges In Property Division?
Dividing marital assets in Texas can quickly become a complex process. Disputes arise when both spouses have strong opinions about what is fair or when one party is suspected of withholding information.
As I can explain, the law aims for a just and right division, but that does not always mean a perfect 50/50 split. Some of the most common issues include:
- Hidden or undisclosed assets: One spouse may fail to reveal bank accounts, investments or property. This can make the process unfair without a thorough investigation.
- Valuation of property: Real estate, vehicles and collectibles can be challenging to value and both sides may disagree on their worth.
- Division of business interests: When a business is part of the marital estate, deciding whether to sell, share or buy out the other spouse can be contentious.
- Division of debts: Disagreements often arise over who should be responsible for credit cards, loans or other liabilities acquired during the marriage.
- Emotional attachment to assets: Sentimental value, such as a family home or heirlooms, can make negotiations more personal and heated.
These challenges can delay the process and cause unnecessary stress. A knowledgeable division of marital assets lawyer helps ensure all property is identified, valued fairly and divided according to Texas law.
What Is The Impact Of Property Division On Taxes?
Property division in Texas is not only about deciding who gets what, as it also creates significant tax consequences. Understanding these implications helps spouses make informed decisions that protect their financial future. Common tax considerations include:
- Capital gains tax: Selling real estate, stocks or other investments as part of the settlement can trigger capital gains taxes that can reduce the asset’s net value.
- Tax benefits of certain asset divisions: Some assets, such as primary residences, may qualify for exemptions or deductions that could benefit one spouse.
- Dividing retirement accounts and pensions in Texas: Splitting these assets often requires a Qualified Domestic Relations Order (QDRO) to avoid penalties and help ensure the division meets IRS rules.
A property division agreement can lead to unexpected tax bills or missed financial opportunities without proper planning.
I am an experienced property division and taxes attorney in Texas, and I can help ensure these issues are addressed during negotiations, not after the divorce is finalized.
What Is Marital Property?
It includes both assets and debts acquired by either spouse during a marriage, with few exceptions. The following list provides specific examples to help you understand what typically falls under community property in Texas.
- Wages
- Bonuses
- Real estate
- Business ownership
- Pension plans and retirement plans
- Investments
- Pets
On the other side of the marital property equation is separate property, which includes assets given to you as a direct gift – such as an inheritance your parents left for you and not your spouse – or items that either of you brought to the marriage. If you purchased the family home prior to getting married, for instance, you may be the only one on the title and it may not be a marital asset.
As mentioned, marital debts incurred during the marriage must also be divided. Texas courts divide debts between spouses in a manner they deem “just and right”. However, this does not always mean a 50/50 split, as the court takes into account various factors to ensure fair debt distribution.
Call To Protect Your Rights
Disputes over property division often arise when couples disagree on what qualifies as marital property or how it should be divided, potentially complicating your divorce and adding to your stress, anxiety and costs. For assistance with these issues and more, call 512-222-4798 or contact The Ezzell Group, PLLC, online to schedule a free consultation.