Mixed Property in Divorces

Characterization of Property in Texas Divorces

In Texas divorces, property is classified as either separate or community. According to the Texas Family Code, any asset acquired during the marriage is generally viewed as community property. There are some exceptions to this presumption, including damages received in a personal injury lawsuit that don't represent lost wages and property gifted to or inherited by a spouse. Additionally, property obtained before the marriage or identified as separate through a prenuptial or postnuptial agreement is considered separate property. If a spouse claims an asset as separate property, they must provide clear and convincing evidence to support their argument.

Dividing Mixed Property in Divorces

In Texas divorces, any community asset is subject to division in a manner that the court deems reasonable and equitable, while separate property remains separate. However, problems can arise when a couple mingles their separate and community assets. For instance, if one spouse sells their separate property and uses the proceeds to make a down payment on a jointly owned home that the couple then pays for together, the parties may dispute whether the home is a community or mixed asset.

When a party contends that a property is separate, they must trace and demonstrate the asset's separate nature. In cases involving mixed property, Texas courts follow the inception-of-title rule, which means they evaluate when and how a party initially acquired an interest in the property to classify it. As such, if a person obtains a house before getting married, it will remain separate property, even if they later exchange it for another asset.

In some cases, the Texas Family Code allows a party to file a claim for reimbursement. This means they can seek compensation for using their separate property to pay for their spouse's separate liabilities or community debts, or using community property to pay for their spouse's separate liabilities. However, claims for reimbursement cannot be pursued for living expenses, child support or spousal maintenance, or for nominal amounts.

Speak with an Experienced Divorce Attorney

Dividing assets can be a complex and difficult process when ending a marriage, particularly when there are mixed separate and community assets involved. If you are facing such issues, it is recommended to seek the guidance of an attorney. The lawyers at Wilson Whitaker Rynell can provide valuable assistance in handling complicated divorce matters. 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.