Dividing assets during a divorce in Texas follows specific legal guidelines. Texas is a community property state, meaning most assets acquired during the marriage belong equally to both spouses. Understanding what qualifies as community property can help you prepare for property division.
Community vs. separate property
Community property includes most assets and debts acquired during the marriage. This can include income, real estate, vehicles, retirement accounts, and even debts. Separate property, on the other hand, includes assets one spouse owned before marriage, inheritances, and gifts received individually. To claim separate property, you must provide clear proof, such as financial records or legal documents.
How Texas courts divide community property
Texas law requires a “just and right” division of community property. This does not always mean a 50/50 split. Courts consider factors such as each spouse’s earning capacity, education, financial needs, and whether one spouse wasted marital assets. Judges may also consider child custody arrangements when determining property division.
Handling complex assets in community property division
Some assets require special consideration. Businesses, retirement accounts, and real estate may need professional valuation before division. In some cases, spouses agree to buy out the other’s share or negotiate a trade of assets. If one spouse attempts to hide assets, the court may adjust the division to ensure fairness.
Preparing for property division in Texas
Understanding what qualifies as community property helps you make informed decisions. Gathering financial documents, listing assets, and knowing what is considered separate property can help you protect your financial interests. If disputes arise, mediation or court intervention may be necessary to reach a fair agreement.