Property Division: Understanding Your Rights
In Texas, divorce inevitably involves dividing your shared life, including your shared assets. The process can be complex, and the stakes are high. You deserve an experienced advocate who understands Texas’ intricate property division laws.
Clarity And Confidence In Property Division
With over 25 years of combined experience serving clients in Texas, our lawyers at Winnie A. Bates, Attorney at Law, provide knowledgeable representation and clear guidance during the property division process. We know the law, and we’re here to help you secure your financial future.
What’s On The Table?
Texas is a community property state. This generally means that all property acquired during the marriage is considered community property and is subject to division. This includes:
- Real estate (homes, land, investment properties)
- Personal property (vehicles, furniture, jewelry)
- Bank accounts, retirement accounts, investments
- Business interests
However, separate property, such as inheritances, gifts received during the marriage or property owned before the marriage, is generally not subject to division.
How Is Property Divided?
While Texas law aims for a “just and right” division of community property, this doesn’t always mean a 50/50 split. Several factors can influence the division, including:
- Each spouse’s earning capacity and financial resources
- The duration of the marriage
- The health and age of each spouse
- Contributions to the marriage, including homemaking and child-rearing
- Fault in the breakup of the marriage (in some cases)
We understand that navigating property division and other family law challenges can be overwhelming. We will work tirelessly to protect your interests, advocate for a fair division and ensure your financial security post-divorce.
What constitutes separate property in Texas?
Texas is a community property state, so everything acquired during the marriage is considered to be jointly and equally owned by both spouses. However, some assets can be classified as separate property (which is not subject to division in a divorce). Separate property includes:
- Property owned proper to the marriage
- Gifts or inheritances received by just one spouse
- Certain personal injury awards
In addition, assets that are protected through carve-outs in prenuptial or postnuptial agreements are generally considered separate property.
How do you prove that certain assets are your separate property?
Since all your assets are considered community property until proven otherwise, you need to provide documentation to the court as a rebuttal. Documentation can include deeds, receipts, bank records, inheritance papers, communications about gifts, marital agreements and other documents showing when the asset was acquired and how. In some cases, you may need witness testimony or forensic accountants to get involved.
What happens to debts acquired during the marriage?
Like property, debts acquired during the marriage are considered community debts, regardless of which spouse initiated the debt. However, it may be possible to rebut this presumption when the debt is tied to one spouse’s separate property (such as interest accrued on student loans that were acquired before the marriage) or debts that were taken out secretly without any community purpose (such as gambling debts). In those cases, the court may decide to divide the debt fairly, rather than equally.
How is the value of property and assets determined?
When the value of certain assets is undetermined or in dispute, a couple may turn to:
- Appraisals, particularly for real estate and valuable items like art or fine jewelry
- Business valuations for family-owned companies
- Market value reports for things like stocks, mutual funds and retirement accounts
In some cases, it may be necessary to hire a forensic accountant to trace assets and make sure that both spouses are making full financial disclosures
How are retirement accounts divided in a divorce?
These can be complicated because the only part of the account that is considered community property is that which was established or earned during the marriage. In general, the court will need to direct the plan administrator to divide the accounts through a Qualified Domestic Relations Order once each spouse’s share has been determined.
Secure Your Future
Facing property division without experienced legal counsel can leave you vulnerable. Contact our attorneys at Winnie A. Bates, Attorney at Law, today at 512-877-6255 or through our online contact page to schedule a consultation. Let us help you navigate this challenging process and secure your financial future with confidence.