Property Division

Denton County Property & Asset Division Attorneys

Experienced Property Division Legal Guidance in Collin County & Tarrant County

At Coker, Robb & Cannon, Family Lawyers, our attorneys have the experience and knowledge necessary to guide you through each step of the divorce process, including the division of assets and property. This area of divorce proves to be one of the most complicated and time-consuming as it requires an ability to thoroughly investigate and analyze all property, organize its monetary value, and negotiate an arrangement that works for each party.

In such an emotionally-charged situation, it can be extremely difficult for both parties to cooperate and make rational decisions. This is where we come in. Our role as your advocate is to provide you with the practical legal guidance and counsel that you need to protect your interests. With more than 110 years of experience among our team, we understand what it takes to avoid a disproportionate award and attain a favorable resolution.

The Importance of Protecting Your Property Rights

Divorce can be a complex and emotionally challenging process, especially when it comes to dividing assets and property. It is crucial to protect your property rights during this time to ensure a fair and equitable outcome. At Coker, Robb & Cannon, Family Lawyers, our experienced property division attorneys understand the intricacies of Texas family law and can provide the guidance and advocacy you need.

When it comes to property division in Texas, it is important to note that the state follows community property laws. This means that any property acquired during the marriage is generally considered community property and is subject to division. However, there are exceptions, and certain assets may be classified as separate property.

Contact us today at (940) 293-2313 to schedule a consultation and discuss your case. We offer financing to help with retainer fees. Click here to see your options.

Why Hire A Family Attorney?

We have helped families just like yours through all types of divorce and family law-related matters. Find out how one of our Board-Certified Family Law Specialists can help you.

UNDERSTAND THE BENEFITS

How Is Community Property Divided in Texas?

Texas is a community property state. All income and property acquired during the marriage is considered "community property" and belongs to each of the spouses equally. This income and property needs to be divided equitably upon a divorce.

Texas statutes grant the courts the right to divide community property in whatever way the believe to be fair. Judges will consider the needs, interests, and rights of both parents and any children involved to determine a fair and reasonable property division arrangement.

Community property in Texas could include:

Bank accounts
Debts
The marital home
Cars and other vehicles
Any co-owned real estate
Other assets and property acquired during the marriage

Additional assets that will be considered include:

Pensions
Stock options
Savings
Retirement plans
Bonuses
Insurance policies

When navigating the process of asset division, it is important that each party is open and honest about the property that they own. Any discovery of hidden assets may sway a judge’s opinion of you, which could negatively impact the ultimate decision. Furthermore, if assets are discovered after the divorce is finalized, you will likely find yourself back in court.

Property Division & Taxes in Texas

When going through a divorce in Texas, it's essential to understand the tax implications associated with the distribution of assets.

Several aspects of property division can have tax implications:

Capital Gains Tax: When selling assets, such as real estate or investments, capital gains tax may apply. This tax is calculated on the profit made from the sale. In a divorce, if a property is sold as part of the division, both spouses should be aware of their potential capital gains tax liability.
Retirement Accounts: When dividing retirement accounts, such as 401(k)s and IRAs, the transfer should typically occur without immediate tax consequences. However, withdrawals or distributions from these accounts post-divorce may incur taxes, depending on the circumstances.
Spousal Support: Spousal support, also known as alimony, is typically taxable for the recipient and tax-deductible for the payor. Understanding the tax implications of spousal support is crucial when negotiating the terms of a divorce settlement.
Child Support and Property Division: Child support is not deductible for the payer, nor is it taxable income for the recipient. It is essential to distinguish between child support and property division to avoid unintended tax consequences.

To minimize the potential tax burdens during property division in a Texas divorce, here are some strategies to consider:

Offsetting Assets: Rather than selling assets and incurring capital gains tax, consider offsetting the value with other assets. For example, one spouse may keep a valuable piece of real estate while the other receives an equivalent amount in cash or other assets.
Qualified Domestic Relations Order (QDRO): When dividing retirement accounts, a QDRO can be used to specify how the assets will be transferred, allowing the receiving spouse to roll over the funds into their retirement account without immediate tax consequences.
Consider Tax Basis: When deciding which assets to retain or sell, consider the tax basis. Assets with a lower tax basis may result in higher capital gains when sold.
Professional Advice: Consult with financial advisors and tax professionals who specialize in divorce-related issues. They can help you navigate the complexities of property division and taxes.

What Is Considered Separate Property?

In Texas, "separate property" is any property that was acquired or owned before the marriage and was kept separate throughout the marriage, as well as some types of property that were acquired during the marriage.

Separate property that can be obtained during a marriage and is not divisible in a Texas divorce include:

Gifts
Inheritances
Compensation from personal injury claims (unless it is intended to compensate for the loss of earning capacity)
Property gifted from one spouse to the other

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Shelby Hart was my lawyer during my divorce. During one of the hardest parts of my life, Shelby was nothing short of kind and professional. He was supportive and honest with me throughout the entire process, and always made me feel comfortable/well informed of every option available to me. Everyone at Coker Legal was easy to talk to and easy to trust. I'm so glad that I was recommended to Coker, and lucky enough to have Shelby as my lawyer. If you're in need of a compassionate law firm/lawyer, this is the place to go!

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Valuing and Dividing Retirement Accounts in Texas

In Texas, like many other states, retirement accounts are typically considered community property subject to division when a marriage ends. This includes retirement accounts like 401(k)s, IRAs, and pensions that were funded or earned during the marriage.

The first step in dividing retirement accounts is determining their value. The value is often calculated at the date of marriage and the date of divorce, and the increase during the marriage is considered community property. Accurate valuation may require the assistance of financial experts, such as actuaries or financial advisors, to ensure fairness.

To divide a retirement account, including pensions, a Qualified Domestic Relations Order (QDRO) is essential. This court order outlines how the retirement plan should be divided between the spouses. A QDRO must be approved by the plan administrator and the court to ensure that it complies with federal and state regulations.

It's crucial to consider the tax implications of dividing retirement accounts. Transferring retirement assets between spouses through a divorce is typically a non-taxable event. However, taxes may apply when funds are withdrawn or distributed later on, depending on the type of account and the circumstances.

Retirement Accounts and Varying Circumstances

When it comes to property division, determining how to divide retirement accounts is often an important and complex issue to address. That’s due in part to the fact that there are a number of issues that make the process a case-by-case matter, such as:

Different rules and procedures – Retirement account division is subject to complicated procedural rules and calculations, which can also vary depending on the type of pension or retirement system involved. For example, federal pensions are subject to different rules and guidelines than those used by local or state governments, the military, large corporations, and other retirement systems.
Terms of a plan – Certain retirement accounts, such as a 401(k), may have unique and specific terms when it comes to what is allowed and what is not. For example, some terms may allow funds to be distributed at the time of divorce (with tax penalties), and others may require the plan holder to retire before distribution.
Prenuptial/postnuptial agreements – Marital agreements, including prenuptial or postnuptial agreements, if spouses have one, may impact which assets are to be included in a marital estate during divorce. That may include pensions and retirement accounts.
Both spouses have a retirement account – When both parties in a divorce have their own respective retirement accounts, Texas courts often choose to award each spouse their own account, if they are nearly equal in value, or use other assets to offset the difference. In these situations it is important to know and be able to prove the real present value of an account because a pension and a 401(k) may have similar cash values, but very different values in the long term.
Disproportionate division – Because property division is not necessarily equal, division of retirement accounts can be disproportionate. As mentioned above, this may happen when both spouses have retirement accounts of different values, but also when other factors are involved, such as custody of any children, divisible debts, unequal earning capacity, and separate property estates.

The Type of Retirement Accounts

The type of retirement account, pension, or benefit plan is of crucial importance. Different retirement accounts and plans may have different terms enforced by the plan’s administrator and may be subject to different regulations, tax laws, and other rules. The vast differences and intricacies of different retirement accounts require tailored approaches and careful consideration of unique issues and laws involved.
Common types of retirement accounts divided in divorce include:

Defined contribution (DC) – A defined contribution (DC) plan is one where an employee, or an employee and an employer who matches retirement, makes contributions on a regular basis. This is the case with a 401(k) a person may have through their work, as well as profit sharing, thrift savings, and employee stock ownership plans
Deferred compensation – Deferred compensation plans are a type of defined benefit plan, or pension, where employers promise a specified monthly payment during an employee’s retirement, or a lump-sum upon retirement based on an employee’s earning history, length of employment, and age. While less common than defined contribution plans, they are still used by some corporations and by various public entities.
Employment-specific retirement – Certain professions have highly specific retirement benefits that need to be addressed properly during divorce. These may include pensions, funds, and plans for police officers, teachers, firefighters, and others that may be subject to unique tax treatment, federal ERISA law, and other applicable regulations.
Military retirement benefits – Military pensions and retirement accounts are also subject to unique rules and laws, including the SCRA, or Service-members Civil Relief Act, that can affect how they are division during divorce. Having an attorney with experience dividing military retirement benefits is critical to effectively navigating the process.

Business Ownership & Divorce

Business ownership is considered community property if the business was established or substantially grown during the marriage. Determining the value of the business is the first step in the property division process.

Valuation methods can vary depending on the nature of the business, but they often include assessing assets, cash flow, market value, and the business's earning potential. Hiring a professional business appraiser or financial expert is often necessary to ensure an accurate valuation.

Once the business's value is determined, couples must decide how to divide this asset. Several options can be considered, including:

One spouse buys out the other: If one spouse wants to retain the business, they can buy out the other's share, either through cash payments, the exchange of other assets, or a structured payment plan.
Co-ownership or partnership: In some cases, couples may choose to continue co-owning the business, even after the divorce. This can be a viable option if they can maintain a working relationship.
Selling the business: If neither spouse wants to continue running the business, they can opt to sell it, and the proceeds are divided between them as part of the property settlement.

Contact Our Team

Why Choose Coker, Robb & Cannon, Family Lawyers?

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Voted Best Family Law Firm & Best Law Firm in Denton County
Working Hard to Achieve the Best Results Possible
Deeply Committed to Listening & Helping You

Let Coker, Robb & Cannon Be Your Advocate

Our team understands the difficult nature of property division and wants to help you protect your interests. When you meet with our attorneys during an initial consultation, you can voice your needs and concerns. Should you choose to retain our representation, you can trust that your needs will be exhaustively pursued.

The Benefits of Working with Coker, Robb & Cannon, Family Lawyers

Our Texas asset division lawyers are well-versed in the specific laws and regulations surrounding property division. We will work closely with you to understand your unique circumstances and develop a personalized strategy to protect your rights and maximize your property division outcome.

Why choose Coker, Robb & Cannon, Family Lawyers?

Extensive experience in family law and property division cases
Proven track record of successful outcomes for our clients
Personalized attention and tailored legal strategies
Compassionate and understanding approach
Strong advocacy and negotiation skills

At Coker, Robb & Cannon, Family Lawyers, we prioritize client satisfaction and strive to provide the highest level of legal representation. Our team is dedicated to protecting your rights and ensuring a fair and favorable property division outcome.