(833) 553-4251
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When significant assets are at stake, complications during a divorce are highly likely. Understanding real estate complications during an Austin high-asset divorce can help spouses avoid delays and emotional pressure. An experienced attorney can guide each spouse through asset division and work toward an acceptable outcome for both parties.
If you are going through a high-asset divorce, you need to pay extra attention to real estate issues. Competent legal counsel by your side can help you avoid unpleasant surprises.
The most serious real estate complication during a high-asset divorce in Austin is often related to property classification. Texas law treats assets acquired during the marriage as community property. It means that both spouses have equal ownership and a right to its division. However, property owned by one spouse before the marriage or acquired through inheritance or gift is usually considered separate.
The problem arises when the couple uses separate property in a way that blends it with community assets. For example, if one spouse owns a house before marriage but the other spouse contributes to significant renovations or capital improvements during the marriage, the property may be subject to reimbursement claims. In other cases, the home’s appreciation in value during the marriage could become a contested issue.
It is the responsibility of the spouse with separate property to prove its classification in a divorce. This can include providing documentation that supports the claim.
Hidden assets are another major complication involving real estate in an Austin high-asset divorce. When one spouse attempts to conceal property to avoid equitable distribution, it can significantly delay proceedings. For example, one spouse can title property under a business name, a shell company, or even a third party. This can make real estate hard to identify during the discovery process.
Hidden assets can take the form of undeclared vacation homes or real estate held in trust. These efforts to disguise ownership may go unnoticed without the help of an experienced attorney who knows what to look for. To find these assets, a lawyer can hire real estate professionals and forensic accountants. They may need to conduct a detailed analysis of financial records and property transfers.
Failing to disclose assets can result in legal consequences. Discovering such an issue could also cause the court to favor the honest spouse when distributing assets.
Transferring property between spouses may be tax-free at the time of divorce. However, future liabilities can arise. For example, if one spouse receives the marital home and later sells it, they may be responsible for capital gains taxes on the property’s appreciation. Meanwhile, tax deductions related to mortgage interest or property taxes stop being a joint responsibility.
Without legal assistance, it may be hard to understand how real estate taxes work after the divorce. This could lead to poor decisions during asset division.
If you are going through a high-asset divorce, you may run into several serious complications. An experienced divorce attorney can help you handle these issues and achieve the desired outcome.
At Kimbrough Legal, PLLC, we can help you navigate all real estate complications during an Austin high-asset divorce to make sure you receive the money you deserve. Call us to schedule a consultation at any time.
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