When it comes to getting a divorce in Texas, it’s important to remember that we live in a “community property state.” As of this writing, we’re one of nine states in the country that abide by community property laws. But, what does this mean for you and how does it impact the division of assets during your divorce?
What is a Community Property State?
A community property state is any state that divides assets in a divorce through an assumption that all assets acquired during the divorce belongs to both parties. Even if you bought it with money from your paycheck, the asset is assumed to be jointly owned.
Texas uses a just and right standard, when dividing assets. When you and your soon-to-be-ex-spouse cannot agree on a property division, the court decides what is just and right, which could stray from a 50/50 split. This means one party may end up receiving more value in the assets they receive than the other. For example, if one parent is getting sole custody of a child in the divorce then they may have more needs than the other party and therefore receive more assets.
What is Considered Separate Property in a Community Property State?
Some assets are not considered in the division of property during your Texas divorce. Most notably, any assets that were brought into the marriage are not considered community property. Everything you acquired prior to your actual marriage remains separate property.
Additionally, gifts are excluded as well as assets or wealth acquired through inheritance. One of the most common questions we get is what about the engagement and wedding rings? If you get married, the rings belong to whoever is wearing them. However, if your relationship falls apart before the wedding then the rings are returned to whoever gifted them because engagement rings are considered conditional gifts – they are gifted on the condition of an eventual marriage.
Can You Get a 50/50 Split in Texas?
You and your soon-to-be-ex-spouse can agree to a 50/50 split. This requires collaboration between you and your soon-to-be-ex-spouse. If you want to ensure your rights are protected and all aspects are considered, it is vital to work with an experienced Texas divorce attorney.
At Kimbrough Legal, we are constantly working to educate clients and ensure the people of Texas have the tools and information they need to get through their divorce with confidence and integrity. On October 27, 2023, at 5 p.m., we are hosting a webinar on this very topic and will include additional details about the importance of disclosures in the division of assets during your divorce case. To speak with an attorney or learn more about how you can sign up for the webinar, contact our firm today.
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