Dividing property during a divorce in Texas can be one of the most critical and emotionally charged aspects of the process. With Texas being a community property state, the courts follow the principle of “equitable distribution,” but this does not necessarily mean an equal split between spouses. Instead, the courts consider a variety of factors, such as income, contributions to the marriage, and future financial needs, to determine what is fair. This can result in a division that may seem unequal on paper but is intended to balance fairness with the unique circumstances of each case.
For those facing divorce, having a seasoned Galveston County property division lawyer from Richmond Law Firm, PLLC can make a significant difference. With an in-depth understanding of Texas family law and a firm commitment to protecting your rights, Richmond Law Firm, PLLC is prepared to advocate for a fair outcome. Protect your financial future today by partnering with a trusted legal ally who understands the nuances of property division in Texas divorce cases. Call us today at (281) 992-1600 to schedule a consultation.
How Does Property Division Work in a Texas Divorce?
During a divorce in Texas, either the parties or the court must determine what happens to community property. Parties who work together to determine division of property may pursue alternative dispute resolution methods such as mediation, but in some cases, these soon-to-be-former spouses cannot agree, and it falls to the judge to determine how to split this property.
Community property division is just one element of decision factors made during a divorce, as this process can also include things such as determinations over spousal support, and child custody, among other things. While all aspects of a divorce could be complicated and have a big impact on your new life, community property is one of the most widely misunderstood aspects of Texas family law.
Many people are under the mistaken impression that community property will be divided on a 50-50 basis, with each party receiving a relatively equal share of the property accumulated during the marriage.
Since so many factors may influence the division of property and since this is likely a major consideration for your financial life after divorce, it is extremely important to find a Texas family lawyer who understands these complex issues and will help you navigate the divorce process.
What is Community Property?
Community property in Texas includes all assets and income acquired by either spouse during the marriage, except those defined as separate property. This includes wages, real estate, and retirement accounts. Texas law assumes all property owned during the marriage is community unless proven otherwise.
It does not matter whose name is on the note, title, account, or contract, so long as the item in question was purchased between the date that the parties got married and the date of the divorce. There are some exceptions to this general community property definition, including assets a spouse had prior to marriage, awards from personal injury settlements, inheritances directed to one spouse, and gifts that were designated for one spouse. These exceptions are identified as “separate property” and the court cannot award one party’s separate property to the other party. However, the party claiming to have separate property is responsible for proving to the court that certain property is, in fact, that party’s separate property.
Some of the most common examples of community property that may be totaled together for the process of property division include:
- A home or real estate purchase during the marriage
- Vehicles purchased during the marriage
- Income from employment, including all tips, salaries, wages, and overtime
- Retirement contributions to a 401k or pension accounts starting on the date of the marriage
- Balances in savings and checking accounts (regardless of whether these are joint or single-owner accounts)
- Payment for lost wages
- Unemployment compensation
From the outset, it’s vital to hire the right attorney who understands your financial position, your concerns heading into the divorce, and property you may wish to push harder for in court.
What Do Texas Judges Look at in Determining Community Property Division?
Texas judges determine community property division based on factors like each spouse’s earning capacity, fault in the breakup, education, future employability, and who has custody of children. Although Texas is a community property state, courts aim for a “just and right” division, not necessarily a 50/50 split.
Even when a judge tries to make things relatively equal, note that not all assets are necessarily equal. For example, dividing up a cash checking account may be relatively quick, but when compared with receiving a higher cash amount, the illiquid family home may have different financial implications for the receiving party. The home may be worth the same amount of money but must be sold at full market value to provide that person with the funds. For someone with more immediate cash flow needs, these are important considerations to discuss with a Texas family lawyer.
It is important to be able to come to the court with a full list of any and all community property so that you can verify that the total amount of accurate assets will be included in this division. While it is not uncommon for attorneys on both sides to aim for a 50-50 division of property during divorce, judges do have the discretion to apply numerous other factors to determine their final decision. Judges are not required to split things down the middle.
When deciding how to split up property, judges will look at things like:
- Separate property owned by each spouse
- Employability of the parties
- Income earning potential of each spouse
- Health needs or disabilities of a spouse
- Health of each person
- Ages of both parties
For example, perhaps one spouse does not have a high level of employability because they do not have proper education, training, or background. If this party gave up these opportunities in exchange for assisting as a homemaker, the judge may consider this in awarding property. The judge may determine that due to this spouse’s inability to earn a living at the same level as the other party, that the homemaker spouse should be entitled to more in property division.
Community vs. Separate Debt in Texas Divorce Property Division
In Texas, the classification of debt as either community or separate plays a crucial role in determining how it is divided during a divorce. Texas operates under a community property system, which generally treats assets and debts acquired during the marriage as jointly owned. However, debts incurred before the marriage or acquired by one spouse through gift or inheritance are considered separate debts. This distinction influences both the division of property and the allocation of financial responsibilities between spouses.
Situations can arise where separate property or debt becomes commingled with community property, complicating the classification. For instance, if one spouse uses separate funds to pay off a community debt, they may be entitled to reimbursement. Texas law allows for such claims, provided there is clear and convincing evidence of the separate property used and the benefit conferred upon the community estate.
The burden of proof lies with the spouse claiming that a debt is separate. They must provide clear and convincing evidence to support this claim. Failure to do so may result in the debt being classified as community debt and subject to division. Additionally, creditors are not bound by the divorce decree and may pursue collection from either spouse if both names are on the debt.
The classification of debt in a Texas divorce hinges on the timing of its incurrence and the source of the funds. Community debts are typically divided between spouses, while separate debts remain the responsibility of the spouse who incurred them. However, commingling can alter these classifications, underscoring the importance of thorough documentation and legal guidance in the divorce process.
Hiring a Texas Family Lawyer Who Understands Community Property Division
When you get a divorce, there are many changes in your life. One of the biggest changes, and likely the most difficult change to adjust to, is your new financial position. Being able to step out of your divorce with a clear understanding of your assets and enough support to step into this new chapter can make a big difference in your life. As soon as you decide to file for divorce, or as soon as you learn that your spouse has filed, you need to discuss your specific case with the help of an attorney.
Working with the right lawyer can make it that much easier to understand all of the assets at play in a community property division and to have a comprehensive conversation about which assets make the most sense for you to receive. Your lawyer is then able to articulate these points in any conversations with the judge or the other attorney as necessary. Contact Richmond Law Firm, PLLC today at (281) 992-1600 to discuss your Texas divorce case.
| Property Type | Description and Examples |
|---|---|
| Real & Personal Property | Includes homes, land, and vehicles purchased during the marriage, regardless of whose name is on the title. |
| Income & Wages | Salaries, hourly pay, tips, bonuses, and commissions earned by either spouse during the marriage. |
| Financial Accounts | Checking, savings, and investment accounts opened or funded during the marriage, even if only in one name. |
| Retirement Contributions | 401(k), pension, and IRA contributions made after the date of marriage. |
| Legal or Insurance Compensation | Lost wage awards, unemployment compensation, and settlements related to marital income loss. |
from Richmond Law Firm https://www.richmondpllc.com/equitable-is-not-always-equal-what-to-know-about-texas-division-of-property-in-divorce/
