How Marital Debts and Assets Are Divided in a Texas Divorce
One of the more challenging aspects of any divorce can be the division of marital property. It can be even more complex in Texas, as the Lone Star state is one of a handful of states that uses a community property approach to the allocation of marital debts and assets. This may include in limited fashion on a case by case nature a form of spousal maintenance as part of a “just and right division” of community property.
What Is the Community Property Approach?
Most states follow the legal principle of equitable distribution, where the marital estate is fairly, but not necessarily equally divided between the spouses. In the nine states that follow community property principles (including Texas), all property acquired during the course of the marriage is considered “community” property and must be divided equally between the parties. Property obtained by each spouse prior to the marriage is identified as “separate” property and must be returned to the spouse who owned it before the marriage. There is also the chance to get money and resources returned to you through legal reimbursement too.
What Kinds of Property Are Community Property in Texas?
Community property commonly includes:
- Income earned from any source during the marriage
- Real property purchased during the marriage, regardless of whether both spouses have their name on the deed or mortgage
- Vehicles purchased during the marriage, irrespective of whose name is on the title
- Retirement contributions made during the marriage
What Kinds of Property Are Separate Property?
In addition to property wholly owned before the marriage, any property received as a gift or inheritance during marriage is generally considered separate property. In addition, if a spouse receives a personal injury settlement, it is typically separate property. But separate property rights are refutable – and must be protected.
The party who does not receive the property may contest this or ask the court for reimbursement of some marital fund payments. For example, if one spouse was paying on a mortgage before the marriage, and the parties continue to pay that mortgage during the marriage, the spouse who does not get the house can seek reimbursement of some of these funds, and even seek their increased value.
Do Other Factors Affect the Division of Property?
Yes. While Texas adheres to the concept of community property, the court must, by law, make a “just and right” division of marital debts and assets. Accordingly, to decide on the distribution of property, the court considers factors such as the needs of any minor children, evidence of a party’s fault in causing the divorce, and other things too – such as a spouse’s education and earning ability or needs.
Contact The Loftin Firm for Proven Divorce Counsel
Good results don’t just happen. They’re a product of experience, skill, knowledge, and hard work. That’s the advantage you’ll get with The Loftin Firm. Over the past quarter of a century, Trey Loftin has represented countless Texans in divorce proceedings, including disputes over division of a marital estate under community property law. He can anticipate the arguments of opposing counsel and take the necessary steps to protect your rights.
To schedule an appointment, call the office at 817-441-8933 or contact online There is no cost or obligation for your first meeting.
Effective Advocacy for Clients Across Parker County in Texas, Including Weatherford,
Willow Park, Aledo, and Annetta, and Throughout Fort Worth