“How will our assets be divided in the divorce?”
“Will I lose my business? Everything?”
“Will debts be divided between us, too?”
These are some of the most common questions we receive from clients at the start of the divorce process. Although property division isn’t always cut and dry, some basic rules can help you better understand the process.
Understanding Texas Property Division Laws & Guidelines
First, Texas is a community or marital property state. This means that both assets and debts are typically divided between you and your spouse.
Any property you had before the marriage is known as separate property, which is safe from division. For example, if you inherited property or a financial asset before your marriage, this may be considered separate in court. You will be required to produce proof of all property you claim to be separate.
In Texas, the law requires the judge to divide marital property equitably or fairly. And although it might seem fair to split everything 50/50, there are other factors involved. The court will consider many factors, including who’s at-fault, who will have custody of the children and each spouse’s current financial wellbeing.
Personal debt includes debt that’s under your name alone, such as credit cards or loans. Any personal debt is typically yours to keep after the divorce process. Sometimes, household debt such as car loans is included in personal debt. An attorney will help you decide whether this is best split or kept to yourself, depending on your situation.
What Happens to Your Business After Divorce?
If you and your spouse own a business together, it’s subject to division during divorce. If you created your business before the marriage, the law generally considers it separate property. It’s important to note that division greatly depends on the type of business you operate.
If you own a large business or corporation, these are often challenging to divide. More than likely, you’ll need to have the business valuated to determine fair market value. After the valuation, there are various options to consider, including selling the business, purchasing your spouse’s interest or offsetting the difference with equity.
Reach Out to Albin Oldner Law With Questions About Property Division
Property division during divorce can be scary and confusing. We’re here to help. To learn more about your divorce or to speak with a Texas divorce attorney, give us a call at 214-430-4440 or send us a message.