Houston Property Division Lawyers

At The Mora Law Firm, we understand that property division can be one of the most contentious and emotionally draining aspects of a divorce. You most likely have many questions regarding how your property will be divided and how the process will work. We are here to help.

Need help with property division in your Texas divorce?
Contact us today at (832) 346-6330 to schedule your consultation!

Understanding Property Division in Texas

In Texas, property is divided according to either the equitable distribution or community property rules. While equitable distribution is the more common method of property division, community property is used in cases where the marriage lasted 10 years or more and the couple has a child together.

Under the equitable distribution rule, property is divided according to the court's "equitable" or fair judgment. The court will generally follow a set of rules to determine how property will be divided. The most important rule is that the court will look to the source of the property, which means that the court will try to make the division as close as possible to the way the property was acquired.

Under the community property rule, the court will divide property according to the source of the property and will not look to the way the property was acquired. This means that the court will generally divide property 50/50, regardless of who earned the income to purchase the property.

Key Assets Included in Property Division

The division of property in Texas includes all property acquired during the marriage, which can include:

• Real estate
• Personal property
• Investments
• Retirement funds
• Debt
• Businesses
• Income
• Pensions
• Insurance benefits

Timeline for Property Division Cases

As with all divorce cases, the time it takes to finalize a property division case will vary based on the facts of the case. However, it is generally a more complicated process than division of marital debt, and thus will generally take longer to finalize.

How to Value Assets for Property Division

Valuing assets during a divorce is a critical part of the property division process. It ensures that each spouse receives a fair portion of the marital property. Here’s how the valuation process typically works for different types of assets:

• Real Estate: The value of a home or other real estate is usually determined through a professional appraisal. Appraisers will assess the property’s market value by comparing it to similar homes in the area and considering other factors like condition and location.
• Businesses: For businesses owned by one or both spouses, valuation is more complex. A business appraiser may be called to determine the value of the business based on its income, assets, liabilities, and market conditions. Methods like the income approach, asset-based approach, or market comparison approach may be used.
• Retirement Accounts: Retirement accounts such as 401(k)s, IRAs, and pensions are valued based on their current balance. If the account was accrued during the marriage, the portion earned during the marriage is typically divided between the spouses. Qualified Domestic Relations Orders (QDROs) are often used to divide retirement assets.

Disagreements over Asset Value:

• If spouses disagree on the value of an asset, it’s common for both parties to hire their own experts or appraisers. If the issue can't be resolved through negotiation, the court may step in to make the final determination.

Importance of Appraisals and Expert Opinions:

• Accurate valuations are crucial, and appraisals and expert opinions can help avoid costly mistakes. These experts provide a neutral and professional perspective, ensuring fairness in the division process.

What Happens if One Spouse Conceals Assets?

Hiding assets during a divorce is illegal and can have serious consequences. If one spouse conceals assets:

• Penalties: The court may award a larger portion of the marital property to the honest spouse if asset concealment is discovered. This is to penalize dishonesty and encourage transparency.
• Legal Steps: If you suspect that your spouse is hiding assets, you can request financial documents, bank records, or even forensic accounting services to uncover hidden property. If necessary, legal action can be taken to investigate and reveal concealed assets.
• Court Response: Courts take asset concealment seriously and may impose fines, contempt of court charges, or even modify the property division to penalize the deceptive spouse. Full disclosure is required by law, and failure to do so can result in an unfair division.

Debt Division in Texas Divorce

In Texas, debts are also divided between spouses during a divorce. Here's how different types of debt are handled:

• Community Debt: Debts incurred during the marriage are considered "community debt" and are typically divided equally between both spouses. This includes mortgages, credit card debt, and personal loans.
• Separate Debt: Any debt one spouse acquired before the marriage, or any debt incurred after separation, may be considered separate debt and may not be divided. However, if the debt benefited both spouses, it may be considered community debt.
• Handling Debt:
  • Credit Card Debt: If accumulated during the marriage, both spouses may share responsibility for the debt, even if only one spouse used the credit card.
  • Mortgages and Loans: Debts related to the family home or other assets may be divided based on who retains ownership. For example, if one spouse keeps the house, they may be responsible for the mortgage.
• Impact of Community Property Rules: Texas follows community property laws, which means that debts accumulated during the marriage are divided equally, just like assets. This ensures that both spouses are equally responsible for financial obligations accumulated during the marriage.

It’s important to carefully assess and divide both assets and debts to ensure a fair and just outcome. Working with a skilled attorney can help navigate the complexities of debt division and ensure that your financial future is protected.

FAQ - Property Division and Divorce in Texas

• How is property divided if one spouse owns a business?
  In Texas, a business that was started during the marriage is considered community property. The value of the business will be determined by a business valuation expert. If the business was owned prior to the marriage, only the increase in value during the marriage may be divided. Both spouses may negotiate or go to court for a fair share.
• Can a spouse keep their inheritance in a divorce?
  Yes, inheritance is considered separate property in Texas. However, if the inheritance was commingled with marital assets (such as being deposited into a joint account), it may become subject to division. It’s important to keep separate property well-documented to protect it during divorce.
• What if one spouse is responsible for the majority of the debt?
  Even if one spouse is primarily responsible for certain debts, Texas law requires that community debt (debts incurred during the marriage) be divided equally between both spouses. However, in some cases, the court may take each spouse’s financial situation into account when determining the final division of debt.
• Can I request the court to assign more debt to my spouse or request modifications?
  While the court generally divides community debt equally, you can request that the court assigns a larger portion of the debt to your spouse if there are factors that justify it, such as one spouse’s greater earning ability or responsibility for accruing the debt. Additionally, if there are significant changes in circumstances after the divorce, you may seek modifications to the debt division.
• How long does it take to divide property in a Texas divorce?
  The time it takes to divide property depends on the complexity of the case. Simple cases may be resolved in a few months, while complex property division, such as valuing businesses or assets with disputes, may take longer. It’s important to be patient and consult with an attorney to ensure a fair outcome.
• Can a prenuptial agreement affect property division?
  Yes, a prenuptial agreement can greatly impact property division in a divorce. If the prenuptial agreement clearly outlines the division of assets and debts, the court will generally honor those provisions unless they are deemed unfair or unenforceable.
• Can retirement accounts be divided in a Texas divorce?
  Yes, retirement accounts such as 401(k)s, IRAs, and pensions are considered marital property if they were accumulated during the marriage. A Qualified Domestic Relations Order (QDRO) may be used to divide retirement funds without penalty.

Get Legal Support from The Mora Law Firm for Property Division in Houston

Whether you are planning to file for divorce or have already done so, it is important to plan for property division. It is easy to get caught up in the emotion of a divorce and forget to plan for property division. This can lead to disagreements and conflict down the road, especially if you do not plan ahead and do not have a plan in place.
At The Mora Law Firm, we understand how important property division is to you, and we are here to help you protect your best interests. We will work with you to determine the value of your assets and property, and will work with you to develop a plan for the division of property that best suits your needs.

Facing complex property division in divorce?
Contact us now at (832) 346-6330 for experienced legal guidance!