Texas is one of nine states in the United States that have community property laws. If you have been going through a divorce in Texas, knowing how the courts handle property division can help you approach the process with more confidence.
What is community property?
Community property is jointly-owned by the couple and includes most of the property they got during their marriage. Common types of community property include:
- Real estate
- Personal property like jewelry, furniture, artwork or cars
- Pension and employment benefits
- Earned income from employment
- Joint bank accounts
- Retirement accounts
- Any existing debt or ongoing loan by either party
- Business properties
- Stock or investment portfolios
In Texas, divorcing couples must divide their community property in a way that is “just and right.” The judge will not necessarily split their assets 50/50. Instead, they will be divided in a manner that is considered fair for both sides of the party.
What is separate property?
Separate property, also known as non-marital property, is any assets that belongs to only one spouse. Separate property is not subject to division in a divorce. This can include:
- Property owned by either spouse before marriage
- Inheritance acquired by either spouse before or during the marriage
- Gifts received from the other spouse or a third party
- Personal injury rewards
Are there exceptions?
Some issues can cloud the distinction between a separate and a community property. One way that property could change classification is through a prenuptial or postnuptial agreement. High-net-worth couples often have these types of agreements to protect their wealth and business interests.
Non-marital property can also become a community property if a couple mixes the two. This can occur in rare instances such as when a spouse deposits their personal inheritance into a joint bank account and the couple uses that money to purchase a family car.
Protecting what matters most
Divorce can be a scary and challenging process to go through alone. Working with an experienced legal counsel can help provide you with guidance and support as you confidently go through the steps of property division.