Community Property in Texas
Texas is a community property state (Texas Family Code § 7.001). Property acquired during the marriage by either spouse is presumed to be community property, owned equally by both spouses. Separate property includes anything owned before marriage, inherited during the marriage, or received as a gift to one spouse. In a divorce, the court divides community property in a manner it deems "just and right," which does not always mean 50/50.
For Frisco families with substantial assets, properly characterizing each piece of property as community or separate is the foundation of the entire division process. This requires careful tracing of assets, especially when community and separate funds have been commingled in shared accounts or used to improve real estate.
Frisco Real Estate: A Major Asset
Frisco's real estate market has seen extraordinary appreciation. Homes in master-planned communities like Phillips Creek Ranch, Lawler Park, Starwood, and Newman Village routinely carry values well above regional medians. Many families purchased during Frisco's growth surge and hold substantial equity that must be divided.
Dividing the family home involves several considerations:
- Current fair market value (appraisal is typically required)
- Outstanding mortgage balance and home equity loans
- Whether one spouse will buy out the other's equity share
- Capital gains implications of selling vs. retaining the property
- The impact on children's school enrollment in Frisco ISD if the home is sold
Lynda Landers works with qualified real estate appraisers who understand the Frisco market to ensure accurate valuations. In cases involving multiple properties or investment real estate, this analysis becomes even more critical.
Corporate Stock, RSUs, and Executive Compensation
Frisco's wave of corporate relocations has brought thousands of professionals whose compensation includes restricted stock units (RSUs), stock options, deferred compensation, and performance bonuses. These forms of compensation present unique challenges in property division because they may be partly earned during the marriage and partly after separation.
Texas courts use specific formulas to apportion the community and separate portions of stock options and RSUs. The "time rule" or "coverture fraction" analysis determines what percentage of unvested awards was earned during the marriage. Getting this calculation right can mean hundreds of thousands of dollars in a Frisco high-asset divorce.
Separate Property Claims
If you brought assets into the marriage or received an inheritance, you must prove the separate character of that property by clear and convincing evidence. Commingling separate funds with community accounts is one of the most common ways Frisco residents inadvertently convert separate property into community property.
Business Interests and Professional Practices
Frisco's entrepreneurial environment means many divorces involve one or both spouses owning a business. Valuing a closely held business requires expert analysis of financial statements, cash flow, goodwill, and market comparables. Lynda Landers regularly engages certified business valuation experts to ensure accurate appraisals of business interests in Collin County divorce cases.
Key considerations include whether the business existed before the marriage, the community's contribution to its growth, and whether personal goodwill can be separated from enterprise goodwill under Texas case law.
Retirement Accounts and Financial Assets
Most Frisco households hold significant retirement assets including 401(k) plans, IRAs, pension plans, and deferred compensation accounts. Dividing these assets requires proper legal instruments. A Qualified Domestic Relations Order (QDRO) is needed to divide most employer-sponsored plans without triggering early withdrawal penalties or taxes.
Lynda Landers ensures that retirement division is handled correctly from the outset, coordinating with plan administrators and QDRO preparation specialists to protect your financial future.
Protect Your Financial Future
Property division in a Frisco divorce often involves the most significant financial decisions of your life. Schedule a consultation with Lynda Landers to ensure your assets are properly identified, valued, and divided.