In Texas, the courts will decide how to divide the marital assets during the divorce process. Many spouses are understandably concerned about what will happen to their investments, stored cash, and other monetary assets that likely make up a significant portion of their wealth. Thankfully, Texas courts aim to be as fair as possible. Usually, this means an even split – but certain aspects of the divorce process can shift this in either direction.
The starting point in deciding how assets will be split during a Texas divorce is determining the division between separate and community property. Separate property is any property owned by one spouse before marriage or property that was acquired during the marriage as a gift or inheritance. Community property is all property and debts acquired during the marriage except for those gifts and inheritances received by only one spouse. The general rule is that any increase in the value of separate property belongs to the owner of the separate property while any increases in the value of community property are shared equally between spouses.
Assets such as stocks, bonds, retirement funds, and cryptocurrencies are considered community property in Texas, provided that they were acquired during the marriage. However, there are exceptions to this rule. If the asset was obtained with separate funds before the marriage or with funds from one spouse’s gift or inheritance, that asset remains separate property.
During the divorce process, spouses will often need to decide how to split up their property and decide who will take ownership of certain assets. For example, when a couple owns a home together, the home can be subject to equitable distribution by the court in the divorce settlement. This means that both spouses must agree on how to sell the house and how much they each should get from the sale, or a fair amount for one spouse to pay the other in order to take ownership of the home. Community financial assets may be used in this manner to balance out other property, such as the home, being assigned to one spouse. As always, spouses may negotiate with one another to decide the ownership of specific assets.
If you’re concerned about how your assets may be divided in your divorce, you’re not alone. Our team at Divorce in Texas has helped plenty of people just like yourself get the results they needed out of their divorce. For more information regarding the process of dividing assets, or for any other assistance in your divorce, contact Divorce in Texas today.
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