Texas is a community state, meaning each spouse’s earnings and assets are presumed to be community property. Thus, if you own community property with your spouse, each spouse is potentially liable for any tax liabilities the other may have incurred. A partition can be an effective means to protect your assets and/or your spouse’s assets.
In order to be effective, a partition agreement must be in writing, signed by all parties, and must comply with a number of other legal formalities. An experienced tax attorney can be instrumental in helping you develop an appropriate plan to minimize your exposure or your spouse’s exposure to tax liens.
What Does a Partition Agreement Accomplish?
Any property that is transferred in a partition agreement becomes one spouse’s separate property. Any property can be subject to a partition agreement, including real estate, earnings, and future income from property. Partitions are also useful to protect the assets of couples that are considering marriage.
Contact Experienced Tax Lawyer, John McDuff
No matter the case, you can rely on The Law Office of John McDuff, P.C. to design a partition agreement that properly protects your and/or your spouse’s assets. For over 20 years, John McDuff has served business and individuals throughout Austin and Central Texas. Contact John McDuff at 512-457-1177 to schedule a consultation.