Austin Asset Division Attorneys

Skilled Legal Support for Fair Asset Division in Texas Divorces

You should be able to keep your most valuable assets when going through a divorce. If the asset division process doesn’t go correctly, you could stand to lose some of your property or feel like you didn’t get a fair share of it.

To help avoid regret when your divorce is over, let the Austin asset division lawyers of Diggs & Sadler handle your case today. We know how to catalog your property, evaluate it, and offer a fair asset division plan to suit your spouse. All the while, we will be committed to upholding your best interests. 

Are you worried about a fair asset division in your divorce? Call Diggs & Sadler today at (713) 766-5355 or contact us online to schedule a meeting with our asset division lawyers in Austin!

What is Asset Division?

In Texas, property division, often called asset division, allocates property and assets between spouses during a divorce. Texas follows community property laws regarding property division, which means that, in general, most property and assets acquired during the marriage are considered community property and are subject to equal division between spouses. However, this process has exceptions and complexities, and a fair division doesn't necessarily mean a 50/50 split of every asset.

Common types of assets involved in property division in Texas include:

• Real Estate: This includes the family home, vacation properties, rental properties, and any other real estate owned by the couple.
• Bank Accounts: Checking and savings accounts, certificates of deposit, and other financial accounts fall into this category.
• Retirement Accounts: This includes 401(k) plans, IRAs, pensions, and any other retirement savings accounts accrued during the marriage.
• Investments: Stocks, bonds, mutual funds, and other investment assets are subject to division.
• Personal Property: Items such as furniture, electronics, jewelry, and artwork are typically divided.
• Vehicles: Cars, motorcycles, boats, and other vehicles are considered assets and are divided between spouses.
• Business Interests: If one or both spouses own a business, the valuation and division of the business can be a complex aspect of property division.
• Debts: Debts acquired during the marriage, such as mortgages, credit card balances, and loans, are divided between the spouses.
• Household Items: Everyday items like appliances, kitchenware, and furniture are usually divided between the spouses.
• Personal Items: Personal items like clothing, collectibles, and sentimental possessions may also be part of the division.
• Artwork and Collectibles: Valuable art, antiques, and collectibles can be subject to division.
• Intellectual Property: Intellectual property rights, such as copyrights, patents, and trademarks, may be divisible assets.
• Professional Practices: If one spouse has a professional practice, such as a medical or legal practice, the value and division of that practice may need to be determined.
• Mineral Rights and Royalties: If the couple owns mineral rights or receives royalties from oil, gas, or other natural resources, these can be part of the division.
• Retained Earnings: In community property states like Texas, income earned during the marriage, even if not yet received, is often subject to division.

Separate vs. Community Property

How does Texas divide property? It is a community property state that uses equitable distribution rules. This means that shared property is divided based on what is fair, not on what is precisely even.

The two types of property to consider in asset division are:

• Separate: If you own a piece of property, such as a gift or inheritance, it should be separate. The same is true for any property you owned before marriage. Separate property is not meant to be divided.
• Community: If you own a piece of property with your spouse or bought something while you were married, it will likely be considered community property. This type of property is divided equitably.

What is Property Evaluation?

You probably know what property is community property in your marriage, but the court doesn’t. Your spouse might not have a clear idea of it, which can cause many problems during asset division. A Texas family law court will evaluate several factors to determine what property should be considered community or owned by both spouses.

The factors considered by a family law judge will include:

• Reason for the divorce or separation
• Income earned by each spouse
• Child custody orders
• Education of each spouse
• Size of the family estate
• The overall health of each spouse

At Diggs & Sadler, we have experience in divorces involving high-value assets and complex estates.

What is Separate Property?

Your separate property could be miscategorized as community property and then given to your spouse or divided. You understandably won’t want that happening. Not only would that technically be wrong, but it might leave you feeling cheated when the divorce ends, making rebuilding a relationship with your spouse more difficult.

To prove that separate property should remain separate, we can consider:

• Proof of purchase, like receipts
• Statements that show you received an item as a gift
• Inheritance information
• Financial or bank records

How Prenuptial Agreements Impact Property Division in Texas

Prenuptial agreements, often referred to as prenups, can significantly impact asset division in Texas divorces. A prenuptial agreement is a legally binding contract entered into by a couple before they get married. It outlines how their assets and debts will be handled in the event of a divorce or the death of one of the spouses. 

These agreements can address various financial matters, which can affect the asset division process in Texas in the following ways:

• Asset and Debt Protection: A primary purpose of a prenuptial agreement is to protect each spouse's separate property. This can include assets they owned before the marriage and any property or assets they want to keep separate during the marriage. Without a prenup, these assets could be subject to community property laws in Texas, but a well-drafted prenuptial agreement can help safeguard them.
• Clarification of Property Ownership: Prenups can clarify the ownership of specific assets and debts. Couples can specify which assets are considered separate property and which are community property, reducing ambiguity in the event of a divorce.
• Division of Marital Property: Prenups often address separate property, but they can also outline how marital or community property should be divided. Couples can specify a division method different from the default 50/50 split dictated by Texas community property laws.
• Business Interests: If one or both spouses own a business, a prenuptial agreement can address the valuation and division of the business in the event of a divorce, helping to protect the business interests of one or both spouses.
• Inheritance and Estate Planning: Prenups can outline how assets will be distributed in the event of a spouse's death. This can be important for estate planning and protecting the interests of children from previous marriages.
• Debt Responsibility: Prenuptial agreements can specify which spouse is responsible for particular debts incurred during the marriage. This can be especially important in cases where one spouse has significant student loan or credit card debt, for example.
• Financial Transparency: Drafting a prenup often requires full financial disclosure from both parties. This can lead to open and honest discussions about finances, which can be beneficial for the marriage and future asset division.

However, it's crucial to ensure that prenuptial agreements in Texas meet certain legal requirements to be enforceable. These requirements may include full financial disclosure, the absence of coercion or duress when signing, and compliance with state laws. 

FAQs About Property Division in Austin

Can we decide how to divide our property ourselves?