As a Dallas divorce lawyer at the Blacknall Firm, I often get asked about how property is divided in divorce cases. One common question is whether a property occupied solely by renters or tenants will be considered a “business” or a personal property. In this blog post, I’ll explain the difference and how it affects asset division in divorce.
Business or Personal Property: What’s the Difference?
The distinction between business and personal property is important because it determines how the property is valued and divided in a divorce. Business property refers to property used for commercial or investment purposes. On the other hand, personal property is used for personal, family, or household purposes.
How is Business Property Valued and Divided in Divorce?
In divorce cases, business property is valued based on its income-generating potential. The court will look at factors such as revenue, expenses, and future earning potential to determine the value of the business. This can be a complicated process, which is why it’s important to have an experienced divorce lawyer who understands the ins and outs of business valuation.
Once the value of the business property has been determined, the court will divide it between the spouses based on their respective contributions to the business, the length of the marriage, and other relevant factors. This can include the spousal support payments, division of assets, and distribution of debts.
How is Personal Property Valued and Divided in Divorce?
Personal property, on the other hand, is typically divided based on its fair market value. This is the price that the property would reasonably sell for in the current market. The court will look at factors such as age, condition, and market trends to determine the value of the personal property.
Once the value of the personal property has been determined, the court will divide it between the spouses in a manner that is fair and equitable. This can include a 50-50 split or a different arrangement that takes into account the unique circumstances of the case.
Applying the Principles to Your Situation
In the example given, the property occupied solely by renters or tenants would likely be considered a business property for the purposes of divorce and asset division. However, the specific circumstances of each case can impact the valuation and division of property, so it’s important to consult with an experienced divorce lawyer.
If you’re facing a divorce and have questions about property division, I encourage you to contact the Blacknall Firm. Our team of experienced divorce lawyers is here to help you understand your rights and protect your assets during this difficult time.
