property in a divorce

Divorce is hard enough, but dividing marital property can make the process even more daunting. First, the parties must identify what constitutes marital property, and that can be a contentious process, especially if there's been any commingling of funds between separate property and marital assets. Then, valuation of the property is necessary to make sure there is an equitable split of property, unless circumstances demand a disproportionate share.

To assure that you receive the property that you are entitled to, you need the guidance of a divorce attorney who knows how to approach the division of assets and debts using the community property principle. At Thiele Law Firm, PLLC, we will review your case, outline your best options, and advocate for your rights and interests. Contact us online or at 713-609-951 to schedule a consultation.

What are Marital Assets in Texas?

Generally speaking, marital assets are property obtained by either spouse, or both spouses together, during the course of the marriage. This property is to be distinguished from property that is kept separate, and only owned by one spouse. Marital assets may include real property, stocks, and retirement accounts. Debt accumulated by one or both spouses during the marriage can also be considered when dividing the property.

What Does Community Property Mean in Texas?

Texas is considered a “community property” state. Therefore, all marital assets are considered to be owned jointly by the spouses and must be split jointly when the parties divorce. Community property belongs to the marriage rather than any one spouse. For example, if a home is bought in only the name of one spouse during the marriage, in a community property state, that home is considered to be community property and belongs to the marriage (and should be split between the parties).

Community property states do not recognize the name a property is registered in as the only owner. For example, one spouse may earn a pension through their employer, and this pension is in their name alone. However, in a community property state, the pension is recognized as belonging to both spouses and will be disbursed accordingly.

There are a few exceptions to what is considered community property in the states that recognize it. For example, property acquired before marriage or an inheritance, even one received during the course of the marriage, may not be considered community property. Gifts during marriage are also a category that may be separate property and not community property to be divided.

Common Challenges to the Division of Community Property

A common challenge to dividing assets in a community property state is the commingling of separate property with community property. Parties may have to trace separate property that has been commingled with the community property. For example, if one spouse uses part of an inheritance to purchase a vacation home, they would claim full credit back for that amount as an inheritance is considered separate property.

Businesses are also often a source of contention in divorces in community property states. Who bought the business and when, as well as who contributed funds and where the funds came from, are all matters to be considered when deciding if a business is community property.

Contact a Division of Assets Lawyer in Harris County Today

Division of community property is required when you get divorced. You and your spouse can agree as to who gets what, but ultimately, a judge will approve it. That said, when money is at stake, division of assets and debts can become contentious and complicated. For example, if a 401K or pension is being divided, the Court will have to sign a Qualified Domestic Relations Order. Having someone who knows the law and has strong negotiating skills will help make the process go as smoothly as possible and protect your rights.