What Is “Community Property” in a Texas Divorce?

 Posted on November 10, 2021 in Division of Assets

Dividing up money property at the end of a marriage can be challenging even for spouses who are cooperating. Married couples often acquire significant assets together such as houses, investment accounts, and joint retirement savings. Texas is a community property state, meaning that all earnings and assets acquired during the marriage are the property of both spouses. There are, however, a few exceptions. If you are going through a divorce and concerned about division of property issues, you should contact a qualified attorney. The Texas divorce and asset division process can be complicated, so you will want knowledgeable legal counsel to guide you.

What Counts as Community Property?

Community property includes any assets acquired during the duration of the marriage, by either spouse. It is not relevant which spouse’s earned income was used to purchase a particular asset or whose name it is under. If it was purchased using community funds, it is community property. Community property in Texas includes:

Income - Any income earned by either spouse during the marriage belongs equally to both spouses. Courts recognize that spouses make non-economic contributions to each others’ paychecks through emotional support or by managing the household so the other spouse can focus on working.

• Real estate and vehicles - Regardless of whose name is on the deed or title or whose earnings were used to make the purchase.
• Retirement accounts - Even if only one spouse made contributions to a 401(k) or other retirement account, both are entitled to the marital contributions.
• Bank accounts - Even if you and your spouse never combined finances, funds in your single account could be marital property if they contain funds earned during the marriage.

What is Not Community Property?

In Texas, there are three categories of property that remain separate property even if they were acquired during the marriage. These categories are:

• Gifts - Gifts intended for one spouse are the property of that spouse.
• Inheritance - Inheritances are generally meant to stay within a family, not to be passed off to an ex-spouse.
• Personal injury settlements - The injured spouse is entitled to keep the full amount of her settlement.

Additionally, any assets you had sole ownership of before the marriage will not become community property under most circumstances.

Call a Texas Divorce Lawyer

If you are going through a divorce, the Clark Law Group can help. When it comes to property divisions, our Dallas divorce attorneys have the experience needed to protect your interests. Our goal is to put our clients first and secure favorable divorce outcomes. Call us at 469-906-2266 to schedule a confidential consultation with a qualified attorney.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.3.htm