Navigating the Community Property Laws in Texas
When a marriage ends, one of the most challenging tasks often is dividing the debts and assets accumulated during the marriage. In Texas, as in eight other states, the obligations and assets accrued by spouses during marriage are allocated at divorce under a community property approach. How does the community property concept work? How does it differ from the way property is allocated in other states? What is the process for distributing marital property in Texas?
What Is the Community Property Approach to the Division of a Marital Estate?
Under the concept of community property, as distinguished from the principle of equitable distribution (the law in most states), all debts and assets incurred or obtained during marriage, but before the divorce complaint is filed, are considered community property. Under Texas law, all community property is subject to “just and right” division, which may or may not mean equally. As a general rule, though, a court will start by assuming an equal split and then consider any testimony or other evidence to support unequal distribution.
How Does the Community Property Approach Work?
As part of the property settlement process in a Texas divorce, the court will first seek to identify whether property held by the parties at the time of the divorce is community property or separate property. The court will first identify any property that qualifies as separate property, which may include:
- Assets owned or claimed by only one of the parties before the marriage
- Gifts received by one of the parties during the marriage, including presents received from the other spouse
- Inheritances received by one of the parties during the course of the marriage
- A personal injury award or settlement to one spouse, provided it’s not for loss of earnings or earning capacity
Once separate property has been identified, all remaining property is deemed community property.
Difficulties can arise if one party brought property into the marriage that wasn’t fully paid for at the time of the marriage. If remaining payments on the asset were made with marital funds, the property may be community property. Alternatively, if the property is found to be separate property, the party not keeping the property may seek restitution or reimbursement of marital funds used to pay for it.
It’s important to understand that simply titling property in the name of one spouse does not make it separate property. For example, if you purchase a house during the marriage, but only list one spouse on the deed, the house is still community property.
Some assets are not easily divided in divorce, such as real estate or vehicles. In those situations, the court is likely to offset the value of a larger asset against other marital property, so that the practical outcome of the property settlement is an equal distribution.
Contact the Proven Family Law Attorneys at Bailey & Galyen
At the law offices of Bailey & Galyen, we have protected the rights of men and women across Texas for more than four decades, including individuals seeking to allocate marital debts and assets in a divorce proceeding. We have a thorough understanding of the community property laws in Texas, and we know how to help ensure that you get a fair property settlement. Contact us by e-mail or call our offices at one of the convenient locations listed below. Our phones are answered 24 hours a day, seven days a week.
