Property Division Attorneys in Hays County, Austin, Bastrop, and New Braunfels

Property division refers to the process of dividing marital assets and debts between spouses during a divorce or legal separation. The goal is to fairly allocate property acquired during the marriage, based on factors like the value of assets and the needs of both parties moving forward.

In most cases, assets and debts accumulated during the marriage are considered “marital property” and must be divided. However, the distinction between marital property and separate property (property owned before the marriage or received as a gift or inheritance) can often be complex.

The way property is divided can have long-lasting effects on your financial future. A fair and thorough division of assets is crucial for both parties’ financial security post-divorce. Some of the key reasons why property division is so important include:

• Securing Your Financial Future: Fair property division helps ensure that both spouses have what they need to move forward after divorce. This includes assets like retirement funds, real estate, and investments.
• Mitigating Financial Strain: An equitable division of property can prevent one spouse from being financially burdened by debt or assets they can’t afford to maintain.
• Protection of Business Interests: If one or both spouses own a business, it’s important to determine how the business will be valued and divided, to prevent future disputes or financial instability.
• Ensuring Fairness: Property division aims to reflect the contributions of both spouses, ensuring that neither party is unfairly disadvantaged.

The process of property division involves several key steps:

1. Identifying Marital and Separate Property: The first step is to distinguish between property that is considered marital (acquired during the marriage) and separate property (acquired before the marriage or through gifts/inheritance). Separate property typically isn’t divided in a divorce.
2. Valuing the Property: Both tangible assets (like homes, cars, and furniture) and intangible assets (like bank accounts, investments, and retirement funds) must be accurately valued. We work with experts to ensure that everything is properly assessed.
3. Negotiating an Agreement: Our goal is to reach a fair settlement that works for both parties, which is why we offer both negotiation and mediation services. A negotiated settlement is often quicker and more cost-effective than a court battle.
4. Court-Ordered Division: If an agreement can’t be reached, the court will step in and decide how property should be divided. The court will consider various factors, including the length of the marriage and the needs of each party moving forward.

Factors That Affect Property Division
When dividing property, courts consider several factors, including:

• The Length of the Marriage: Longer marriages may result in a more equal division of assets, while shorter marriages may involve more limited asset distribution.
• Each Spouse’s Financial Contribution: This includes not only monetary contributions but also non-financial contributions, such as raising children or supporting a spouse’s career.
• The Health and Financial Needs of Each Spouse: A court may award more assets to a spouse with greater financial or medical needs, especially if they are not able to support themselves post-divorce.
• Any Prenuptial or Postnuptial Agreements: If there is a valid prenuptial or postnuptial agreement in place, that will influence how property is divided.
• The Value of Assets: Assets like real estate, savings accounts, and retirement funds will need to be evaluated for their fair market value to ensure they’re divided appropriately.