Real estate investments can lead to complex issues for property division in a Texas divorce, especially if there are co-owners or business entities involved. A former husband recently challenged the property division in his divorce, which characterized certain property as his wife’s separate property and awarded his father-in-law a 50% interest in a piece of real estate.
The parties moved to Texas from the U.K., intending to purchase real estate in Austin. In 2018, the wife’s parents gave her about £250,000, documented as a gift in a letter. The wife put £214,000, which totaled a little over $248,000, into a joint account. The funds were used for 97.19% of the purchase price of a property identified by the court as “the Webberville property.” The purchase and deed were in only the husband’s name based on advice from an immigration attorney.
The parties purchased “the Gunter property” with the wife’s father in late 2019. They did not have a written contract regarding the co-ownership, but the wife’s father testified they agreed he would put 50% down and own 50% of the property. He had signed a letter in November of that year, however, stating the funds he put toward the purchase were a gift with no expectation of repayment. The husband told him having only the couple on the title would facilitate the purchase, but he would amend it to add the wife’s father. The father was not added, but the husband did give him property and loss statements for the property and pay him $14,000 as his share of the rental income.