Property Settlements

Classifying Property in Texas Divorces

According to Texas law, property in divorce cases falls into two categories: separate and community property. Generally, any property acquired by either spouse during the marriage is presumed to be community property, which means it belongs equally to both spouses. However, there are exceptions to this rule for property obtained by gift or inheritance, property designated as separate via a pre- or post-marital agreement, gifts between spouses, and compensation awarded for bodily injury not intended to replace lost income. Additionally, any property owned individually by either spouse prior to the marriage is considered separate property.

Developing a Property Settlement Agreement

Many couples going through a divorce are able to reach a mutually agreeable arrangement on how to divide communal property and liabilities. This typically involves discussions with lawyers and possibly an impartial third party. However, it's advisable for both parties to have legal representation even if they get along well and believe it's unnecessary, to avoid accidentally waiving any rights. Once a settlement agreement is finalized, it's put in writing and submitted to the court. If the court approves the agreement, it becomes part of the final divorce decree and legally binding. If the court deems the agreement unfair, it may ask for changes or hold a hearing.

If the parties can't agree on a property settlement, the case will proceed to court. In Texas, all communal property is subject to division, and the court must divide it in a way that is just and right. While an equal division is possible, the court is not required to divide the property equally. Instead, the court evaluates all the assets and liabilities accumulated by both parties to determine a fair division. The court also specifically divides the rights to any pension or retirement plans and insurance, considering factors such as the tax implications of the division and whether either party has fraudulently depleted communal assets. Other factors taken into account include the health, earning potential, income, and individual assets of each party.

Speak with an Experienced Divorce Attorney

Creating a property settlement agreement can be a complex process, and the terms agreed upon will be legally binding and lasting. If you're currently in the process of divorcing, it's wise to consult with an experienced attorney about your situation. At Wilson Whitaker Rynell, we have the expertise to assist parties in achieving a fair and efficient division of assets, and we will protect your interests. 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.