Austin Property Division Lawyer
At the Law Office of Ben Carrasco, we specialize in family law, combining legal expertise with local insight to protect what matters most. As a trusted asset division attorney, Ben Carrasco navigates Texas property division laws and develops personalized legal strategies to ensure fair outcomes for his clients..
Contact The Law Office Of Ben Carrasco, PLLC
We live by our commitment to zealous advocacy and are passionate about your case. Whether you need assistance with a high-conflict divorce or a custody modification, our smart and responsive approach is designed to yield a positive outcome for you. Don’t hesitate to reach out.
Understanding Property Division in Texas
Courts weigh factors like: (I don’t think this is the correct case to cite; Holley relates to the factors a court considers in determining conservatorship of a child, not property division. These cases may be more appropriate citations: Murff v. Murff, 615 S.W.2d 696, 698-99 (Tex. 1981); Twyman v. Twyman, 855 S.W.2d 619, 625 (Tex. 1993).
- Length of the marriage
- Earnings and employability
- Physical and mental health
- Education and future earning capacity
- Spousal misconduct or dissipation of marital funds
That means even in a long marriage, if one spouse misused shared funds or avoided supporting the family, the court could award a greater share to the other spouse.
Separate property includes assets owned before marriage, inheritances, gifts to one spouse only, and personal injury awards. But when community funds improve separate property—for example, paying a mortgage or investing in a pre‑marital business—that distinction becomes blurred. Tracing, documentation, and expert testimony become critical in these cases.
See: Murff v. Murff, 615 S.W.2d 696, 698-99 (Tex. 1981); Twyman v. Twyman, 855 S.W.2d 619, 625 (Tex. 1993)
Common Challenges in Austin Property Division Cases
High‑stakes divorces in Austin often feature:
High‑net‑worth assets
Hidden or undervalued assets
Commingled property
No prenup or post‑nup
Business ownership
These scenarios demand an Austin property division lawyer who collaborates with forensic accountants and business valuation experts to build the strongest case possible.
How the Court Divides Property in Texas Divorces
When defining “just and right” asset division, the court evaluates several relevant legal precedents. These include:
Length of the marriage
Spouses’ earning abilities
Marital misconduct impacting finances (e.g. dissipation)
Education, health, and future financial needs
Translated into everyday language, “just and right” means a fair division based on circumstances—not necessarily equality.
Examples of Disproportionate Awards
A spouse who entirely supported children while the other spent community funds irresponsibly may receive a larger share.
One spouse’s illness or inability to work post‑divorce may also justify unequal division.
Asset Types Frequently Subject to Division
Dividing property requires identifying whether an asset is community, separate, or commingled—and then properly valuing it. Some assets appear straightforward but may involve significant legal nuance.
Real Estate
According to Texas law, real estate includes:
- Marital residence: If purchased during the marriage, it’s presumed community property, regardless of whose name is on the title. Courts often allow one spouse to “buy out” the other or order the property sold.
- Rental or investment properties: These may generate income streams and carry tax consequences. Judges must decide how to divide equity and who bears maintenance or mortgage obligations post-divorce. (See
- Inherited property: Generally separate, but if marital funds paid for improvements or mortgage, a reimbursement claim could arise.
Clear documentation—titles, trust instruments, deeds—is key to distinguishing between community, separate, and comingled ownership.
Retirement Accounts & Pensions
These assets can be divided using a Qualified Domestic Relations Order (QDRO). Community contributions made during the marriage typically entitle the non‑participant spouse to a portion.
Business Ownership
- Was the business started before or during the marriage?
- Were community funds or efforts used to expand the business?
- How should the business be valued—on net asset value, cash flow, or goodwill?
Often, only one spouse wants to retain the business. That spouse may need to compensate the other with a greater share of other assets.
Investment Accounts & Stocks
Investment portfolios are typically considered community if funded during marriage. This includes:
- Brokerage accounts
- Mutual funds
- Company stock options and RSUs (restricted stock units)
Timing matters, particularly with employer-granted equity that vests over time. Stock options earned during marriage but vesting after divorce may still be partially considered community.
Personal Property & Valuables
High-dollar personal property—artwork, antiques, luxury watches, or firearms—may require independent valuation. Often, these assets carry sentimental value, which courts don’t weigh. Nonetheless, they must be divided or awarded equitably.
Each item should be cataloged, photographed, and, where appropriate, appraised. Documentation helps avoid disputes about missing or concealed property.
Debt Division in a Texas Divorce
Property division in Texas includes not just assets but also debts. Creditors don’t care about your divorce decree—they just want payment. That’s why thoughtful legal planning around debt is essential.
Types of debts subject to division include:
- Credit card balances
- Mortgages and HELOCs
- Auto loans
- Medical bills
- Tax debt (state and federal)
Joint vs. Individual Liability
If debt was incurred during the marriage for the benefit of the community, courts typically assign it to both spouses—even if only one name is on the account. Debts tied to separate property (e.g., student loans used before marriage) are usually assigned individually.
However, post-divorce liability is tricky. If your ex-spouse defaults on a joint debt, creditors can still pursue you—even if the decree assigns the debt to your ex. Legal tools like a Deed of Trust to Secure Assumption or indemnity clauses can mitigate this risk.
Tax Debt and Liens
Unpaid taxes can burden both spouses—even if only one earned income. The IRS views married couples as jointly liable unless an Innocent Spouse Relief claim is filed and granted. Divorce orders don’t absolve you from tax obligations unless explicitly addressed.
Debt is divided alongside assets. Courts typically:
- Assign liabilities incurred during marriage to both spouses
- Allocate premarital debt to the responsible spouse
Reimbursement Claims and Comingled Assets
When community funds improve separate properties, Texas courts allow reimbursement claims under Family Code § 3.402. This often arises in three scenarios:
- Community funds used to pay separate property debt
Example: Mortgage on a premarital home paid from joint income. - Community labor or time increases the value of separate property
Example: Spouse A owns a business before marriage; Spouse B contributes unpaid labor during marriage. - Use of separate funds for community expenses
Less common, but possible when one spouse uses inheritance money to pay off community debts.
Courts carefully account for community contributions and property appreciation to determine equitable reimbursement.
Identifying and Valuing Marital Assets
Accurate identification and valuation are the backbone of a successful property division strategy. Texas courts require full financial transparency under sworn inventory disclosures. But not every spouse complies, especially in high-asset or contentious divorces.
Key Asset Identification Steps:
- Gather all account statements (banking, retirement, investments) for at least the last 2 years
- Trace premarital and separate contributions using clear documentation
- Inventory all real property and personal valuables
- Request discovery or subpoenas when one spouse is evasive
Valuation Tools and Experts
Depending on the complexity of the estate, an asset division attorney may retain:
- Forensic accountants: To trace commingled assets, value business interests, and uncover fraud
- Real estate appraisers: To determine the market value of homes, land, or rental properties
- Certified valuation analysts (CVAs): For business valuation and goodwill calculation
- Digital asset consultants: To value cryptocurrency, NFTs, and online income streams
If one party attempts to understate value—whether it’s a closely held business or equity award—expert cross-examination and motion practice can force a fair outcome.
Hidden or Offshore Assets
Offshore accounts, cryptocurrency wallets, and trusts in tax-haven jurisdictions require subpoenas and often forensic tracing.
Ben Carrasco’s litigation experience includes complex asset discovery in cases involving substantial concealment.
Mediation, Litigation, and Negotiation in Property Division
Each route has pros, cons, and tactical implications:
Mediation
- Confidential
- Often faster and less expensive than litigation
- Voluntary settlement means more control over terms
- Works best when both parties are open to compromise
Litigation
- Necessary when the other side won’t disclose assets, act in good faith, or settle reasonably
- Judges can compel disclosure and enter enforceable orders
- Risks include public records, longer timelines, and higher costs
Collaborative Divorce
This approach involves a structured team—including financial and mental health professionals—and emphasizes agreement over litigation. It works well when spouses are high-functioning and both prioritize a smooth transition.
Choosing the Right Strategy
The Law Office of Ben Carrasco tailors every strategy to your goals—whether that’s swift resolution or aggressive courtroom advocacy. Our firm evaluates:
- Cost-benefit of litigation vs. settlement
- The level of cooperation from your spouse’s counsel
- Asset complexity
- Custody overlap (if any) that might influence property negotiations
Protecting Your Future Through Smart Legal Planning
Property division isn’t just about splitting assets—it shapes your financial future. An over‑or undervalued asset can have ripple effects long after divorce. As experienced Austin property division lawyers, we develop strategies to help clients:
Restructure their estate plan post-divorce
Revise beneficiary designations on retirement accounts, insurance, and wills
Safeguard separate property through post-divorce agreements or trusts
Address post-divorce income planning, including Social Security, pensions, or business revenue streams
Avoiding Future Conflict
If you’re entering a second marriage or accumulating post-divorce wealth, a prenuptial agreement can provide clarity and protection. Texas courts uphold properly drafted prenups, which prevent future commingling or asset exposure.
Divorce should also trigger an immediate review of your current retirement goals and financial timeline. This is where family law and financial planning intersect—and where we’ll help you move forward with control.
Frequently Asked Questions
Is Texas really a 50/50 state?
No. Texas presumes equal division of community property—but courts may skew toward one spouse based on income disparity, contributions, and other factors.
What if my spouse hid assets?
Failure to disclose assets can lead to court sanctions or evidence of disproportionate distribution. Our firm works with forensic investigators to uncover hidden or offshore holdings.
Will I lose my house?
Not necessarily. Your homestead may be divided or retained by one spouse, depending on contributions and plans for buy‑out or sale.
Can I keep my retirement account?
You may retain premarital contributions, but the community portion is subject to division via QDRO.
What happens to shared debts?
Community debt stays with both spouses unless agreed otherwise. Legal tools exist to minimize your exposure in case of default.
Why Choose Our Austin Property Division Attorneys
Meet Ben Carrasco and learn why clients choose our team for complex property division cases.
The Law Office of Ben Carrasco offers clients:
- Personalized legal strategies tailored to your unique financial and family situation
- Collaboration with certified financial experts to analyze hidden or undervalued assets
- Aggressive litigation when needed, or strategic negotiation if that better serves your goals
- Transparent communication from day one, with clear roadmaps and consistent updates about case progress
Stand confidently behind Ben Carrasco’s leadership. As a Stanford‑educated, board‑certified asset division attorney and Austin native, Ben has years of experience providing results-driven outcomes for those who need help navigating Texas family law.
You may also benefit from our other practice areas, including:
- No-fault divorce for broader divorce guidance
- Spousal support for alimony assistance
- Marital agreement for proactive asset protection
Schedule a Consultation With an Experienced Austin Property Division Lawyer
Protect your financial future from the outset. Contact The Law Office of Ben Carrasco for a free initial consultation. Early legal counsel matters—especially when hidden or complex assets are in play.
Contact us to schedule a consultation and take the first step toward a fair and strategic resolution. Navigate Texas property division with clarity and confidence—and an Austin property division lawyer on your side.