During a high net worth divorce, couples will need to address multiple different types of assets, including financial accounts, vehicles, jewelry, furniture, valuable artwork or collectibles, and family businesses. Real estate, including the marital home, vacation homes, or commercial properties, are often among the most valuable assets owned by a couple, and complex property litigation may be needed to determine how the division of this property will be handled. During the divorce process, spouses should be sure to understand their rights regarding real estate property and the legal and financial issues that they may need to address.
Community Property Vs. Separate Property
The first thing to consider when addressing real estate is determining whether it is considered community property or separate property. Community property includes any assets acquired by either spouse during their marriage, and Texas law requires these assets to be divided equally during a divorce.
A home or other real estate property purchased during a couple’s marriage will be considered community property, while real estate owned by one spouse before getting married will usually be considered separate property that will remain in the possession of that spouse. However, these issues can become more complex if a spouse contributed toward an increase in the value of the other spouse’s separate property during their marriage.
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