Real estate complications during divorce in Frisco can be emotionally and financially draining. The property division lawyers at Towson Law Firm, PLLC are here to help you navigate these complex topics. Whether you are struggling to divide commercial rental properties you own together or need help establishing your “sweat equity” at a specific property, we could help.
While Texas is a “community property” state, not every property can be easily split 50/50 between two parties. Sometimes, properties are subject to liens or other obligations. Other times, it may appear that one spouse owned a property before the marriage, but the other handled all the work and property management.
Real estate investments may involve both financial and non-financial contributions. Sweat equity is a typical example of a real estate complication that may arise during divorce in Frisco and is one that a skilled attorney could handle.
For example, imagine a young married man is enlisted in the military and away on active duty. While on duty, he inherits a dilapidated, run-down family home worth only a few thousand dollars. Over the next few months, his wife manages the property, beautifies it, and turns it into a quality rental home. She paints the home, selects the landscaping, reviews rental applications, and collects the rent every month. Additionally, she ensures the insurance bill is paid on time and handles emergency calls from tenants, calling the plumber or replacing the refrigerator as needed.
These hours of work and effort are an example of “sweat equity.” Although her husband inherited the real estate, her efforts transformed it into a valuable asset for the family, so splitting this asset correctly is more complicated than simply stating, “He inherited it. It is his alone.”
Many families use a mortgage, or a loan from a financial institution, to buy a home. When a marriage dissolves, the mortgage debt can be split 50/50 between the two parties. Oftentimes, the easiest way to settle this arrangement is to sell the home, pay off the mortgage, and split any equity (leftover money) between the parties.
However, this solution is not always viable. For instance, changes in the real estate market may leave a couple owing more than the property is worth. This is referred to as “being upside-down” on a property.
Other times, a spouse might take out a secret loan using the family home as collateral. This debt is considered a community debt between both parties. As such, it requires a seasoned Frisco lawyer to bring this real estate complication to the court’s attention and come to a reasonable solution that satisfies both parties.
If real estate issues are complicating your divorce, the thoughtful attorneys at Towson Law Firm, PLLC are here to help. We have extensive experience with these and other real estate complications during divorce in Frisco, and we look forward to sharing our knowledge with you.
Contact our dedicated team today to schedule a consultation. Our lawyers and support staff are always ready to help you find a satisfactory agreement that causes the least disruption to your family.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
