Interspousal Gifts

Property Rights in Texas Divorce Proceedings

Texas law generally considers property acquired by either spouse during the marriage as community property, with some exceptions. These exceptions include property obtained through devise, descent, or gift during the marriage. Personal injury damages awarded to a spouse during the marriage are also separate property, except when they compensate for loss of earnings during the marriage. Any property that is not community property is considered separate property, even if acquired before the marriage. Community property is subject to division during divorce proceedings, based on what the court deems equitable and just, while separate property remains the property of the spouse who owns it. This is why interspousal gifts, which are usually considered separate property if adequately proven, can create such disputes during divorce proceedings.

Interspousal Gifts and Divorce

Proving that an asset was given as an interspousal gift can be challenging, especially for items that do not require a deed or other documents to establish ownership. While it is relatively easy to establish that a spouse obtained property through devise, descent, or as compensation for a personal injury, proving that an asset was given as an interspousal gift requires "clear and convincing" evidence under the Texas Family Code. This means that evidence such as emails, text messages, transactional documents, and eyewitness accounts may be helpful in demonstrating whether property should be considered separate property.

Disagreements often arise in divorce proceedings regarding whether one spouse granted ownership rights of an asset to the other or merely permitted them to use and enjoy the property. With real property, establishing ownership is relatively easier compared to smaller assets. For example, if one spouse transfers the deed to a home to the other spouse, the transfer constitutes a gift, and a written deed evidences this transaction. The home would likely be considered the separate property of the receiving spouse if properly proven in court. Similarly, if one spouse uses their separate property to purchase a home in the name of both spouses, it can sometimes be presumed that the purchasing spouse intends to gift half of the property to the other spouse.

When one spouse makes a gift of property to the other, the gift is presumed to include all the income that may arise from that property. Therefore, it is essential to properly characterize any property acquired by either party during the marriage in divorce proceedings.

Speak with an Experienced Divorce Attorney

Although gifts are typically given with good intentions, gifts given from one spouse to another can lead to heated disagreements should the couple decide to divorce. The seasoned lawyers of Wilson Whitaker Rynell have experience in advising clients about their rights and can assist you in gathering the evidence needed to give you a strong chance of a favorable result. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.