When a couple owns real estate, business interests, or investment assets located in multiple states, divorce is no longer governed solely by local considerations. Instead, questions of jurisdiction, property characterization, valuation, and enforceability intersect in ways that can materially affect a case's outcome. Managing divorce with multistate property requires careful coordination between Texas community property law and the laws of other states where assets are located. If you have geographically diverse holdings and are considering divorce, it is critical to talk to an attorney about how you can protect your interests. At McClure Law Group, our seasoned Dallas divorce attorneys regularly handle complex, multijurisdictional property issues and work to protect clients’ financial interests through every phase of divorce, and if you engage our services, we will advocate aggressively on your behalf.
Jurisdiction and the Application of Texas Community Property LawIn managing divorce with multistate property, one of the first questions that arises is which court has jurisdiction over the divorce and the authority to divide property. Texas courts have jurisdiction to dissolve a marriage if the residency requirements are met, but their power to directly affect property located in another state may be limited. While a Texas court may lack authority to transfer title to out-of-state real property, it can still consider the value of that property when dividing the marital estate and can order one spouse to take actions necessary to effectuate the division.
Texas applies community property principles to determine each spouse’s interest in marital assets, regardless of where those assets are located. However, managing divorce with multistate property often requires understanding how another state’s property laws may differ, particularly if assets were acquired while the couple lived elsewhere. Some states follow equitable distribution rather than community property rules, which can influence how assets are titled and treated during the marriage. Texas courts may need to carefully analyze these distinctions to reach a just and right division.
Characterization of Multistate AssetsA central issue in managing divorce with multistate property is determining whether assets are community property or separate property. Texas law presumes that property acquired during marriage is community property unless proven otherwise. This presumption applies even when property is located outside Texas. However, tracing the character of assets can become more complex when they were acquired, improved, or refinanced in different states over time.
For example, real estate purchased in another state during the marriage may be presumed community property under Texas law, but improvements made using separate funds or proceeds from a prior residence may give rise to separate property claims or reimbursement rights. Managing divorce with multistate property often requires detailed financial tracing, historical documentation, and a clear understanding of how funds moved across state lines. Without careful analysis, valuable rights may be overlooked or improperly divided.
Valuation Challenges Across State LinesAccurate valuation is critical in any divorce, but managing divorce with multistate property introduces additional layers of complexity. Real estate markets vary significantly by location, and business or investment assets may be subject to different regulatory environments depending on the state. Texas courts rely on credible evidence to establish value, which may require appraisals or expert testimony from professionals familiar with the specific markets involved.
Timing also matters. Property values may fluctuate during the divorce process, particularly in volatile markets. When managing divorce with multistate property, attorneys must decide whether to seek valuation as of separation, filing, or trial, depending on what is most appropriate under Texas law and the facts of the case. These decisions can substantially affect the overall division of the marital estate.
Even after a Texas court issues a divorce decree, managing divorce with multistate property does not end automatically. Enforcement can be challenging when assets are located outside Texas. If a spouse fails to comply with court orders regarding out-of-state property, additional legal proceedings may be necessary in the state where the property is located.
Meet With Skilled Dallas Divorce AttorneysIf you are managing divorce with multistate property, it is essential to work with attorneys who understand Texas community property law and the challenges posed by multijurisdictional assets. At McClure Law Group, our seasoned Dallas divorce attorneys have extensive experience representing clients in complex divorces involving real estate, investments, and business interests across state lines, and if you hire us, we will work diligently to protect your rights and financial future. Our main office is located in Dallas, and we have a Collin County office in Plano where we meet clients by appointment. We represent individuals in Garland, Fort Worth, McKinney, Richardson, Frisco, Irving, and Rockwall, as well as throughout Dallas, Collin, Grayson, Tarrant, Rockwall, and Denton Counties. Contact McClure Law Group at 214.692.8200 or complete our online form to schedule a confidential consultation with one of our experienced attorneys.