Property Division Attorney in McKinney, Texas

Community Property Division for McKinney Families

In Texas, nearly all assets and debts acquired during a marriage are presumed to be community property — meaning they belong to both spouses and must be divided when the marriage ends. For McKinney residents, property division is handled by Collin County district court judges who apply the "just and right" standard mandated by the Texas Family Code.

A "just and right" division does not automatically mean 50/50. The court has broad discretion and may award a disproportionate share of the community estate to one spouse based on factors such as fault in the breakup, disparities in earning capacity, the needs of the children, and the health and age of each spouse.

Community Property vs. Separate Property

Community Property

Community property includes virtually everything acquired by either spouse during the marriage, including:

• Wages, salaries, bonuses, and commissions earned during the marriage
• Real estate purchased during the marriage (including the family home)
• Retirement account contributions made during the marriage
• Business interests developed or acquired during the marriage
• Vehicles, bank accounts, investments, and personal property acquired during the marriage
• Debts incurred during the marriage

Separate Property

Separate property belongs to one spouse alone and is not subject to division. It includes:

• Assets owned before the marriage
• Gifts received by one spouse during the marriage
• Inheritances received by one spouse
• Personal injury recoveries (except for lost wages)

The burden of proving that an asset is separate property falls on the spouse claiming it. This requires "clear and convincing evidence," which often means tracing the asset's origins through financial records. When separate and community funds have been mixed (commingled), tracing becomes more complex and may require forensic accounting.

Business Valuation in McKinney Divorces

McKinney's growing economy means many divorcing couples own businesses — from professional practices along Highway 75 to retail operations in historic downtown to tech companies near the Craig Ranch development. Valuing a business for divorce purposes is a specialized task that often requires expert appraisers. Key considerations include:

• Whether the business is entirely community property or partly separate property
• The appropriate valuation method (income approach, market approach, or asset approach)
• Goodwill — both personal and enterprise goodwill — and how each is treated
• Whether one spouse will retain the business and compensate the other

Retirement Accounts and QDROs

Retirement accounts are often among the most valuable assets in a McKinney divorce. The community property portion of 401(k) plans, pensions, IRAs, and other retirement accounts must be divided. Dividing employer-sponsored plans typically requires a Qualified Domestic Relations Order (QDRO) — a specialized court order that directs the plan administrator to pay a portion of the benefits to the non-employee spouse.

QDROs must comply with both federal law (ERISA) and the specific terms of each retirement plan. Drafting a proper QDRO requires precision — errors can result in tax penalties or a failed division. Lynda Landers works with QDRO specialists to ensure your retirement assets are divided correctly.

Real Estate Division

For many McKinney families, the marital home is the largest single asset. Property values in McKinney's established neighborhoods — Stonebridge Ranch, Adriatica Village, Tucker Hill, and the historic downtown district — can be substantial. Options for handling the family home include:

• Buyout: One spouse retains the home and compensates the other for their share of the equity
• Sale: The home is sold and the net proceeds divided
• Deferred sale: In some cases, the court may order the home to be kept until a future date (often when the youngest child graduates high school)

Related Family Law Topics

• Divorce in McKinney — property division is a core component of every divorce
• Child custody — the needs of children can influence property awards
• Child support — support obligations may intersect with property division

For more on Texas property division, visit our Texas Divorce Resource.