Living in the community property state of Texas, you may think that it is easy for assets to be split during a divorce, but that is not always the case. When the married couple has accumulated numerous investments, there are many considerations to be taken that can drastically change the quality of a divorce settlement for better or for worse.
Here are some important factors involved in splitting oil and mineral rights in a Texas divorce settlement.
Can You Prove The Rights Are Separate Property?
Before anything else, can you prove that your oil rights are yours alone? This may be the case if you acquired the asset before marriage or received it as an inheritance or gift during your marriage and it has remained in your name only. If any one of these conditions is the case, you may not have to split that asset.
What Are The Terms?
In the process of dividing assets, it is important to re-familiarize yourself with the lease agreement with the oil company. You and your attorney will need to make sure that the process of splitting the oil interest with your ex-spouse does not violate the lease agreement.
What Is The Big Picture?
For a high-worth couple, it can be helpful to keep the big picture in mind when splitting assets during divorce settlement negotiations. The oil interests could be used as a bargaining chip in deliberations. With many different variables at play, arranging a trade-off of assets can help avoid selling off assets at an inopportune time and going through a out partitioning process. In some cases, it may be beneficial to offer a buyout in exchange for sole ownership of an oil interest. The best final result will vary in each case.
Dividing high-worth assets such as oil rights can be a complex matter, so you will want to work with professionals familiar with this type of asset when you are dividing community property.
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