Tips for Handling Real Estate in an Austin High Asset Divorce

 Posted on December 30, 2019 in High Asset Divorce

Handling real estate can be an extremely complicated process, especially when you own a mix of residential properties and commercial properties with your spouse. As you may know, under Texas law, most property acquired after the date of marriage is “community property” and will get divided between the spouses upon divorce. If you are anticipating a high net worth divorce in Austin and own significant real estate, it is important to work with a divorce attorney who has experience handling complex property in a high net worth divorce.

While the division of community property is often complicated under any circumstances, real estate or real property can pose particular issues. The following are some tips from our Texas high net worth divorce attorneys for handling real estate in an Austin high asset divorce case.

Classifying Real Estate: Know Whether It is Community Property or Separate Property

For most married couples in Texas, the family home will be classified as community property and will be subject to division. In addition, any property that you acquired—whether it is a vacation property, a rental property, or a commercial property—after the date of your marriage can also be classified as community property. Moreover, even if you purchased one of these properties prior to the date of marriage, if you made payments on any of them or invested in updates during the marriage, those increases in value may constitute community property.

Given that real estate can be extremely valuable, it is important to work with an experienced high net worth divorce attorney in Austin who can provide you with information about your real estate holdings and whether they are likely to be classified as community property and thus divided.

Valuing the Property: Have Your Own Appraisal Done

While you likely have had your real estate holdings valued in previous years for tax and insurance purposes, it will be essential to have those properties valued again when you are getting divorced.

When it comes to residential properties, you will most likely want to hire your own professional appraiser. Professional appraisers will look at the specific market in which the property is located, specific details of the property itself, and comparable properties in order to provide you with the most accurate estimate. Having this valuation can be extremely helpful if your spouse comes up with a very different figure for the value of your family home and any vacation properties you may have. Keep in mind that professional appraisers can provide you with important valuation information about properties in Texas and those outside the state.

In a high asset divorce, you also may own commercial property. Valuing commercial property can be particularly complex. There are a few different approaches to valuing commercial real estate, including a cost approach, an income approach, a sales comparison approach, a gross rent multiplier approach, and other potential approaches. You should speak with your Austin divorce lawyer about the best method for obtaining a fair and accurate valuation of your commercial real estate.

Contact a High Net Worth Divorce Lawyer in Austin, TX

Going through a high asset divorce is complicated, and owning various forms of real property can make the divorce even more complex. An experienced Austin high net worth divorce attorney at our firm can speak with you today about your case. Contact Powers and Kerr, PLLC online or by phone at 512-610-6199 to learn more about how we can help manage valuable real estate in your Texas high asset divorce case.

Sources:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.6.htm

https://www.valuepenguin.com/small-business/how-to-value-commercial-real-estate

https://www.nerdwallet.com/blog/mortgages/how-to-determine-home-value/