If you are divorcing in Texas and own property in another state, you may wonder how the court will handle those assets. Out-of-state property can add complexity, but it can still be addressed during a Texas divorce. Learning how courts approach these assets may help you prepare for property division.
How Texas courts address out-of-state property
Texas courts generally have authority over the spouses in a divorce. This authority may allow them to address out-of-state assets when dividing the marital estate. Texas community property laws may apply to property acquired during the marriage, even if the property is located in another state.
However, courts generally cannot transfer ownership of real estate located in another state. Instead, the court may require the spouses to take certain steps, such as signing documents. The spouses must then follow the transfer procedures required by the state where the property is located.
How out-of-state assets are valued
Before dividing property, spouses usually need to determine its value. Out-of-state real estate may require an appraisal from a professional familiar with the local market. Investment accounts, business interests and other assets may require financial records or additional documents to show their value.
Consider factors that may affect the property’s long-term value and ownership. Different states have their own tax rules, transfer requirements and ownership laws that may affect what happens to an asset after divorce.
Practical issues that may arise
Assets located outside Texas often require additional steps. You may need to work with title companies, local officials or other professionals in the state where the property is located to complete a transfer. Filing requirements and transfer procedures can vary by state.
If the property produces rental income or has ongoing expenses, address those financial issues during the divorce process. Keep organized records of deeds, mortgage statements, tax documents and income records. These documents can help show the property’s value and role in dividing assets.
Every divorce is different. Keeping accurate records and understanding your property can make addressing out-of-state assets easier.
Preparing for property division
As you prepare for divorce, gather documents and information about any property you own outside Texas. Review what you own, its value and any requirements that may apply in another state. Careful preparation can help you approach property division with a clearer understanding of your options.
