Public reporting indicates that actress Lori Loughlin sold a luxury Palm Desert property after announcing her intention to divorce Mossimo Giannulli in 2025. There was no public dispute between Loughlin and Giannulli over the sale of their home, which is notable because our attorneys often see disputes over high-value real estate—whether it should be sold, retained, or awarded to one spouse. These questions frequently fuel property division litigation in Texas divorces.
Texas is a community property state, and trial courts must divide community property in a manner that is “just and right.” A ‘just and right’ division requires the trial court to divide the marital estate equitably. “Just and right”, as established in a Supreme Court of Texas case, Murff v. Murff, does not always mean an equal division, particularly in high-net-worth cases involving complex assets. (Citation: Murff v. Murff, 615 S.W.2d 696, 699 (Tex. 1981).)
Our Texas family law attorneys follow a multi-step process to determine how real estate should be divided upon divorce, and to ensure the fair division of real estate (and other assets) for our clients.
Categorizing Real Estate as Either Community or Separate Property
Real estate acquired during marriage is presumed to be community property unless a spouse establishes separate ownership by clear and convincing evidence, per Tex. Fam. Code § 3.003.
Real estate is generally considered separate property when it was owned by a spouse before marriage. Property acquired during marriage by gift, devise, descent, or the recovery for personal injuries sustained during marriage (excluding loss of earning capacity) can also be separate property.
These rules typically apply when spouses own mansions, ranches, farmland, or income-producing investment property acquired or improved during marriage.
When spouses cannot agree on disposition, Texas courts may order the sale of real property and divide the proceeds, according to Tex. Fam. Code § 7.001. Courts regularly approve this remedy when partition in kind (the physical division of a property) would be impractical or inequitable.
How Texas Courts Approach the Division and Sale of Real Estate
The trial court’s discretion in valuing and dividing real estate is broad, particularly when competing or contradictory expert testimony is presented. Appellate courts rarely disturb trial court decisions absent a finding of “arbitrary or unreasonable” conduct, per Schaban-Maurer v. Maurer, 238 S.W.3d 815, 820 (Tex. App.—Fort Worth 2007, no pet.).
High-value properties can also give rise to reimbursement and economic-contribution claims. A spouse may seek reimbursement when community funds were used to reduce principal on separate real estate or to fund capital improvements, per Tex. Fam. Code §§ 3.402, 3.403. These claims do not alter the title, but they may materially affect the net division of the real estate, as established by Penick v. Penick, 783 S.W.2d 194, 197 (Tex. 1988).
Courts may consider fault, disparity in earning capacity, tax consequences, and the nature of the real estate itself in valuing and dividing real property, per Murff, 615 S.W.2d at 699. In cases involving income-producing property, future cash flow and management control often influence the court’s decision to order a sale rather than continued co-ownership, per Young v. Young, 609 S.W.2d 758, 762–63 (Tex. 1980).
Because Texas does not recognize legal separation, parties remain married until divorce. This means that property acquired before the decree remains subject to characterization as community or separate property and to its division, according to Tex. Fam. Code § 6.001.
Contact a Texas Divorce Attorney Today to Demand a Fair Division of Real Estate
Disputes over high-value (and even luxury) real estate tend to lengthen a divorce’s timeline. The Texas divorce attorneys at the McClure Law Group bring a tough, no-nonsense demeanor. Our goal is the fair division of real estate and other property for our clients, and we tend to achieve our goals.
Call the McClure Law Group at 214.692.8200 for a consultation.