Tracing & Characterization.
"Sounds Great, when might I need help with this?"
A more succinct version of this concept can be found in the Texas Family Code:
Any property or asset you owned prior to marriage is your separate property.
Your separate property retains its character as your separate property during marriage.
Any property or asset you acquire during marriage is community property, meaning it is owned by you and your spouse
Community property retains its character as community property during marriage
What are some Separate Property Examples?
Any property, asset or funds owned prior to marriage would be characterized as your separate property.
If the same types of property, assets or funds were gifted to you or you inherited them after date of marriage, they could be your separate property.
The most common types of separate property we Trace & Characterize for our clients include:
Houses & Land
Shares of Stock
Cash, Dividends & Stock Splits
Employee Incentive Shares
Stock Units or Shares that vest post-divorce
What if I spent my separate property during marriage?
This is one instance where our Tracing & Characterization
services are essential.
If you sold a separate property house, liquidated an investment account or used inherited money during marriage, we Trace those funds and assets until we find where they went. The formulas & methodologies we use are given to us by the State of Texas Family Code; after following them we are able to Characterize your assets and/or Reimbursement Claims.
In case all this sounds simple...
Unfortunately, it couldn't be more complicated.
The possible innumerable permutations of separate and community property transactions are very difficult to master. We have an experienced & educated team of professionals specific for this purpose.