Property Division: Dividing Assets And Debts
One of the most important aspects of divorce is property division. During this process, all marital property is divided between you and your spouse. Texas is a community property state. This means all assets acquired during marriage belong to both spouses and must be divided.
At Grable Grimshaw Mora PLLC, we will classify your assets and debts as separate or marital property, and we will fight for a fair division. The outcome of your settlement is essential to help you establish a strong financial future.
What Is Community Property? What Is Separate Property?
Community property are assets that a couple acquired during marriage. These assets belong to both parties. Property that each owned before the marriage is considered separate property. Exceptions may include inheritances and property specified as separate in a prenuptial or postnuptial agreement. If you did not co-mingle separate accounts with jointly owned funds, you may be able to exclude them from consideration as part of the marital estate for the purpose of divorce.
What Happens To A Business During Divorce?
If you and your spouse own a business, the business (or its comparable value) will need to be divided during divorce. We can help you divide the business or identify creative options that will keep the business intact.
How Are Retirement Accounts Divided?
Retirement accounts may be divided through qualified domestic relations orders (QDROs). Your spouse is eligible to receive a portion of your retirement account earned during all the years you were married. Military pensions are also divided if one spouse is (or was) a member of the armed forces.
Smart Solutions With Minimal Tax Impact
The way you divide your assets can have significant tax repercussions. We will explain the tax repercussions of different distribution plans to prevent unnecessarily high tax burdens. All of the following can impact your taxes:
- Division of real estate, including the marital home and other properties like a vacation home or an investment property
- Division of valuables such as collectibles, jewelry, art, guns, tools or recreational vehicles, or other high-value assets
- Alimony to be paid or received temporarily or long term
- Division of stocks and bonds
Settlement Conferences, Mediation Or Litigation
There are several pathways to property division that will become part of your divorce decree, including:
- Settlement conferences with your spouse and his or her lawyer
- Litigation when the two sides cannot agree
Depending on your circumstances, we can steer you toward the resolution method that will offer you the greatest benefit at the lowest cost.