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Property division when high-value assets are involved

On Behalf of | Feb 4, 2025 | Property Division

Divorce in Texas comes with a lot of decisions, especially if there are considerable assets that have to be divided. This can be a challenging part of the divorce because both may have very different ideas about how things should be split. 

One thing that you should remember is that Texas is one of nine states that uses the community property method of property division. This means that all property that you and your ex accumulated during your marriage are owned equally by both spouses. 

Only some assets are community property

In Texas, assets are divided into two categories – community or separate. Separate property includes things owned by one spouse before the marriage, but it can also include things that were given specifically to one spouse during the marriage. Some examples of property that may be considered separate include family heirlooms and inheritances. Birthday presents are also considered separate property.

Because Texas uses the community property standard, the assets are divided equally instead of equitably. In the case of high-asset divorces, this could mean that one spouse gets the main home and another gets the vacation home with other assets that would equal to the main home.

Don’t forget about debts

Many high-asset divorces also come with a considerable debt load. All of those debts have to be paid off or divided between the two spouses. Paying them off may require liquidating assets if there are some available. Debts that are divided in a divorce are part of a civil order. This means that the creditors can still hold both parties accountable, even though one was ordered to pay. Either party skipping payments could have an impact on the creditworthiness of both parties.

High-asset property division can be challenging because of the vast number and type of assets that are included. People who are going through this should work with someone familiar with the division of high-value assets. This may make it easier for them to learn about the options and how each of those may impact their ability to maintain their current lifestyle even after the marriage.

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