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How to Address Home and Business Ownership During Divorce Mediation

Posted on in Property Division

Texas divorce mediationIf you are planning to end your marriage, you and your spouse will need to address a variety of complex issues related to your property and finances, as well as other legal issues that will affect the two of you. While the divorce process can sometimes be lengthy and expensive, divorce mediation provides the option to complete this process more quickly and efficiently. As you prepare for divorce mediation, you will need to understand the issues to consider as you and your spouse negotiate a settlement that will address ownership of assets such as your home or a family business.

Considerations for Homes and Businesses During the Property Division Process

During divorce mediation, you and your spouse will work with a neutral mediator to address all of the issues that must be resolved before your marriage can be legally dissolved. As part of this process, you will make decisions about how you will address all of your marital property, which includes any assets or debts you have acquired during your marriage. Your goal is to reach agreements that will provide each of you with a fair share of your marital property, ensuring that you will both have the financial resources you need to succeed as you move forward after your divorce.

As you negotiate a property settlement, you may need to address ownership of high-value assets, including:

  • Your marital home - Real estate property may be one of your most valuable assets, and both of you may wish to continue owning and living in your family home. The choice of who will own your home may depend on multiple factors, such as whether a parent wishes to continue living in the home with their children. If one spouse will maintain sole ownership of the home, the other spouse’s name will need to be removed from the home’s title, and the mortgage will need to be refinanced to ensure that the non-owner spouse will not be responsible for this debt. The spouse who will own the home will need to make sure they will have the means to pay all expenses associated with home ownership, including mortgage payments, utilities, property taxes, and maintenance costs.
  • A family business - If you or your spouse own a business that was founded during your marriage, the business will be considered a marital asset. You may need to determine how to divide marital property in a way that will allow a business owner to maintain ownership of their company, while providing the other spouse with assets of an equivalent value. A business valuation may need to be performed to ensure that you fully understand the current and future value of the business. If both spouses have been involved in managing the business, you may choose to maintain co-ownership going forward. If necessary, you may also choose to sell the business and divide the profits earned from the sale.

Contact Our Collin County Property Settlement Mediators

As you proceed with divorce mediation, you will need to make sure you fully understand the value of the assets you own, and this will ensure that your property can be divided fairly. At Divorce Mediation Centers of America, we can make sure you address these issues correctly during the mediation process, and we will help you create a settlement that both you and your spouse will be satisfied with. Contact us at 469-406-4320 to set up a free consultation and learn more about our Plano divorce mediation services.

 

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm

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