To align with community property laws and avoid legal or financial complications, consider forming a jointly owned LLC with your wife as a member.

I start with cleaning and repairs, then I apply it towards utilities, legal fees, late fees, and rent, usually in that order.I also have a holdover clause that says the tenant is charged 4x of the monthly rent, prorated daily if they hold onto the property after lease termination.

My question is really around the legality and process of taking back the garage from the existing tenants for this project.

In the meantime, put the tenant who broke their lease on notice that they have violated the terms that they agreed to in the lease which is a binding legal document.

You will need a licensed TX attorney to oversee the legal documents, you need escrow officers and transaction managers and business development/marketing.

Do not rely on it as legal advice.

Post in her local communities legal section.  

I think they just get NV corps for tax purposes maybe but they are not legal... and many are out right scammers..  

Numerous ways assets can, legally and illegally be placed beyond the reach of judgement creditors. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.