Marital Assets

Community vs. Separate Property Under Texas Law

The Texas family law code outlines the process for categorizing and distributing property during a divorce. It specifies that any property acquired by either spouse during the marriage is deemed to be community property, while property owned by either spouse before the marriage, or acquired by gift, devise, or descent during the marriage, is regarded as separate property. In addition, damages obtained for personal injuries sustained by either spouse during the marriage are considered separate property, except for those received for loss of earning capacity.

If either spouse disputes the presumption that property is community property, they must provide clear and convincing evidence that the property is separate property. Alternatively, the spouses can establish separate property through a prenuptial or postnuptial agreement.

Sometimes, separate and community property can get mixed, as in the case of a retirement account that one spouse had before the marriage but contributed to during the marriage. The portion of the account's value before the marriage is separate property, while the contributions made during the marriage are community property. Determining the value of the separate and community assets in a property can be challenging and usually requires the retention of a financial expert. An experienced divorce attorney can assist you in identifying an expert witness for your case.

Dividing Property in a Divorce

Although Texas follows the community property system, it does not imply that all marital assets are split evenly. Rather, in accordance with the Texas Family Law Code, the court is obligated to distribute the marital estate in a manner that is just and right, taking into account the rights of both spouses and any children born of the marriage. In other words, the court has the discretion to determine what division of marital property is just. When evaluating how to distribute a marital estate, the court may consider various factors such as the age and earning capacity of each spouse, the income earned by each spouse, whether either spouse is the primary caregiver of any children born of the marriage, and the tax implications of any property division.

Speak to an Experienced Divorce Attorney

The division of marital property can be a contentious matter in divorce cases, with parties frequently disagreeing over what is a just distribution of assets. The experienced divorce attorneys at Wilson Whitaker Rynell can evaluate the specifics of your situation and assist you in pursuing an equitable division of your marital property. 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.