Refinancing A Separate Property Home During Marriage
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Homeowners refinance their homes for a variety of reasons, usually to take advantage of lower interest rates. When a married homeowner refinances a home that is their separate property (e.g. if they owned the home before the marriage), they need to be sure that, in the flurry of paperwork, they don’t unwittingly give half of their separate property home to their spouse.
That’s what happened in two Texas cases, where the husband’s signature on the new Warranty Deed and Deed of Trust caused half of his separate property home to become his wife’s separate property.
A more recent case, however, held that unless there is sufficient evidence that the separate property owner intended to give one half of their separate property to their spouse, the refinance and new deed does not change the character of the separate property to community property.
Admittedly, "intent" is a sticky wicket, complicated by the fact that the alleged intent isn't usually a matter of debate until the couple is battling it out in divorce court.
In my latest post, I untangle what property owners need to know as it relates to separate and community property when they go about the refinancing process.
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Carol Wilson provides expertise, focus and compassion in times of family turmoil, having skillfully litigated and tried complex divorce, property division, and child custody cases for more than 30 years.
She has been Board Certified in Family Law by the Texas Board of Legal Specialization since 1992. Subscribe to the firm's newsletter here.
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Our Property Division Practice
One of the most important issues to resolve during a divorce is the division of property between both spouses. Before the court can divide the community property in a divorce the Court must determine whether the property owned at the time of the divorce is community property or separate property.
It is common for spouses to fundamentally disagree over the value of an asset or who is entitled to what. We regularly deal with complex property division and work closely with experts such as forensic accountants and business valuation experts to maximize our client’s position.
Learn more about how we serve our clients. |
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Join Me at the ASC Annual Luncheon
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The last day to buy a ticket is June 23!
Please note: Lunch is no longer available with a ticket, but don't let that stop you from supporting this great cause.
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Attorneys Serving the Community, a volunteer organization of Dallas legal professionals, is sponsoring its 34th annual luncheon on Friday, June 25.The virtual event benefits ASC's 2020-2021 beneficiary, Hope Supply Co., which provides critical support —such as diapers, clothing, and school supplies — to homeless and at-risk children in the Dallas area.
I have been a proud member of Attorneys Serving the Community for many years and was a sponsor of the 2021 Heart & Sole 5K, which, like the luncheon, raises funds for Hope Supply.
Because of economic losses caused by the pandemic, demand for Hope Supply's services have skyrocketed in the last year. Please consider supporting Hope Supply at whatever level you can. And, of course, we'd love to see you at our annual luncheon, which features a keynote address by Olympic gold medalist and FIFA World Cup Champion Abby Wambach. Buy tickets here.
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