It seems like there are a million things that need your attention while going through a divorce. It’s an incredibly difficult period, emotionally and financially, for both parties.
How you protect your possessions is a crucial factor to take into account. You need to know what will happen to the property portfolio that you and your spouse created together during the course of your marriage. Do you need to sell off your rental properties or can you keep them?
The Texas law on the subject is as follows.
If parties can agree, there’s no need for court intervention
The first point to make is that parties to a divorce can decide for themselves what should happen to their assets. There is no need for the dispute to go to court if you can reach an agreement. Any deal you two reach will still need to be approved by a judge, and they will only do so if they find that assets, including real estate, have been divided equitably.
Texas is a community property state
It is regarded as marital, or community, property if you and your ex-spouse purchased rental property while you were married. Everything will be split equally between the two of you if you are unable to reach an agreement and a court is asked to intervene.
You have choices on what you do with a rental, including:
- Deciding to maintain the property, co-managing it, and equally dividing any profits
- Selling the property and splitting the earnings
- If you have more than one rental and can divide your properties evenly, (e.g. you each take one of the two rentals you own), this is an option
Your specific situation will determine the appropriate course of action for the rental properties you acquired during your marriage. You can learn about your alternatives by speaking with an understanding and supportive legal professional.