In McKinney TX divorce settlements, the court considers that all income earned and property acquired by either spouse during the course of the marriage belongs equally to both spouses. Under Texas divorce settlement law, all real property is deemed community property. This legal principle often leads divorcing couples to sell their home.
In the absence of certain “just and right” reasons why the home and other real estate holdings should not be considered community property, equity in the home will be split equally by the court. As residential real estate in McKinney TX has considerable value, parties in divorce settlements usually try to reach an equitable disposition of the home and other assets prior to standing before the court.
When resolution regarding the home is not pre-arranged in divorce settlements, the home and other assets can be sold and the net equity divided equally by the spouses.
Separate Property in Divorce Settlements In McKinney TX
By law, a spouse seeking to keep an asset free from division in a divorce settlement must prove with convincing evidence that the asset is separate property and not community property. In cases where one spouse inherited property or was gifted a home by a friend or family member, the court is likely to deem the house separate property.
For divorce settlements, the law may also deem real property as separate property if it belonged to one spouse prior to the marriage and remained separate throughout the course of the marriage. Unfortunately, this definition is not always as clear cut as many contentious spouses believe.
In divorce settlements in McKinney TX, real property such as the family home, personal property and intangible property represent the bulk of community property. If a spouse can prove beyond doubt that a specific asset is separate party, the court is prohibited from awarding an interest in that property to the other spouse.
Preparing For Divorce in McKinney TX
Even with a basic understanding of divorce settlement law in McKinney TX, one can see that carefully and properly preparing for divorce requires thorough due diligence and comprehensive planning. In many McKinney TX households, the most valuable asset is the home.
Time spent familiarizing one’s self with the local real estate market is time well spent. According to Trulia.com, median household income in McKinney is $53,366. Median family income runs higher at $72,133.
Currently, Trulia reports that 906 new and resale homes are on the market. Another 113 home are in various stages of foreclosure. The average listing price of homes currently on the market in McKinney TX is $406,874. This figure represents a healthy 5.6% increase over year-on-year comparisons.
In the last 12 months, home values in McKinney have increased by about $21,567. This is equity that divorcing spouses could have gained by waiting until 2015 to agree to a divorce settlement.
The encouraging real property trends in McKinney make preparing for divorce and understanding divorce rights critical to getting out from under the mortgage and having equity to divide. Divorce settlements can be painful and sometime bitter but the effects can be worse if the home goes into foreclosure and damages the credit of the divorcing spouses. This is one way divorce settlements in McKinney TX can go from bad to worse in a flash!
Real Property Divorce Settlement Checklist
In analyzing the possible distribution of assets and income of divorcing spouses, a checklist can be helpful. The list should include:
- Identification of all real property
- The value of the property
- Mortgage amounts attached to the real property
- Identification of personal property
- Identification of all other assets
- Identification of all liabilities of divorcing spouses
- Cash holdings
- Resolution of community property
- Declaration of separate property
Inevitably, there will be other items on the checklist but this crude framework will get the conversation moving. In divorce settlements, the court takes a dim view of spouses who attempt to secret assets and personal property.
Due diligence is an effective way to keep the division of assets, including the family home, on track. In many instances, divorcing homeowners settle the distributions of real property prior to appearing in court. This is challenging for parties that do not know their divorce rights or the value of their real estate.
Be smart about planning divorce in McKinney. Knowing your market and working toward a cost-effective, prudent divorce settlement has many benefits. Sell your home effectively and plan accordingly to have a successful divorce settlement.