A partition agreement allows married couples to make their own legal determination about ownership of their property. With a valid partition agreement, they can effectively override many of the Texas community property rules for the division of property.

Many couples find that they enjoy the control and peace of mind provided by a partition agreement. McKinney divorce lawyers explain the security and other benefits these agreements can provide.

Property Ownership Can Be Complicated in Texas

Property owned by a married couple in Collin County is either considered to belong to one partner as that person’s separate property or it is considered property belonging to the married community, jointly owned by both partners. The classification affects how property is allocated in divorce as well as how property passes when one partner dies.

Determining whether an asset is individually owned or community-owned can be challenging. For instance, while an asset owned by one partner before the marriage is often treated as separate property, if that asset appreciates in value, the added value may be community property. If an asset is mingled with marital assets or used by both partners, it could be treated as belonging equally to both.

McKinney Divorce Lawyers Develop Partition Agreements to Clarify Ownership Issues

The potential for confusion about property ownership leads to a lot of uncertainty. One way to provide clarity and ensure that property is allocated in the way that a couple intends is to have McKinney divorce lawyers prepare a partition agreement. Even if neither partner has any intention of divorcing, a partition agreement helps a couple understand the full implications of their financial positions and can ensure that property passes to family members according to the couple’s wishes.

For example, if one spouse has a house and a child at the time of the marriage, the partition agreement can specify that the house remains that spouse’s separate property so it will pass to the child at the time of that spouse’s death. A partition agreement can be particularly helpful in situations where:

  • One spouse owns part of a closely-held business
  • One or both spouses own significant assets before the marriage
  • One or both spouses have a child before the marriage
  • Partners want real estate interests to be held a certain way
  • Partners own complex assets or property with sentimental value
  • The marriage was never formalized (common law marriage)

A partition agreement can allow parties who are separated but not divorced to protect their financial situation.

Creating a Partition Agreement

A partition agreement is essentially a contract between two spouses that specifies that certain property will be treated as a spouse’s separate individually-owned property. To be valid under Texas law, it must meet certain requirements. 

In addition to ensuring that the agreement is drafted properly, both partners must demonstrate that they have a full understanding of the implications of the agreement. Because it can be difficult to satisfy all the requirements, it is wise to work with experienced McKinney divorce lawyers to ensure that the agreement will be enforceable.

McKinney Divorce Lawyers Can Protect Your Property with a Partition Agreement

All marriages come to an end at some point, whether because of death or divorce. It is critical to consider what will happen to the property at that time.

When you work with the skilled McKinney divorce lawyers at Nordhaus & Nordhaus, PC to develop a partition agreement, you can ensure that your property is protected and expectations are met in the future. Contact us today for a confidential consultation to learn more.