People often sell their marital home in a divorce and the proceeds are divided between the two parties. However, you may have an extensive real estate portfolio which means asset division can be a little more complicated. If you live in Texas, here are some factors to consider when it comes to these matters.
Buying out your ex-spouse
The easiest way to complete the high-asset property division process is often to buy out your former spouse. This is ideal if your ex doesn’t want to become a real estate investor or agent. You would need to hire a professional to provide estimates for the entire value of your portfolio and offer your ex a sum in exchange for their ownership share.
If you decide to use the buyout option, make sure you go through the official channels to complete the process. Don’t simply write your ex a check; ask your lawyers to create a legally binding contract so you’ll have a paper trail in case there are any conflicts in the future.
Create an LLC
Another way to engage in effective high-asset property division is to transfer your assets to an LLC so you’ll have control over the LLC as a sole manager. This method is most effective if you owned the LLC before getting married. In this case, the courts will likely assume your company is separate property.
If you had an LLC before marriage, be sure not to mix business and personal funds during the marriage. Don’t use any of your personal funds to cover business expenses and don’t limit the salary you receive from your company to reinvest money into your company. Doing so could change your LLC from separate property to community property.