At the Carlile Law Firm, LLP, our Marshall family law attorneys fully understand that divorce is a life-changing experience that often comes with significant emotional and financial challenges.
We also know the division of assets and debts is among the most contentious aspects of a divorce, which can lead to significant disputes between spouses. In Texas, this process is governed by community property law, which can be complex and requires a clear understanding to ensure a fair outcome. Here, our Harrison County divorce lawyers explain.
What is Considered Community Property in Texas?
Texas is one of the few states that follow community property laws. This means that most assets and debts acquired during the marriage are considered jointly owned by both spouses, regardless of who earned or incurred them. This joint ownership makes dividing property one of the most challenging aspects of a Texas divorce, often leading to disagreements and legal battles.
How is Community Property Divided in a Texas Divorce?
While the law presumes that all property and debts acquired during the marriage are community property, this doesn’t mean they will be split 50/50. Instead, Texas law requires a just and proper division of community property, considering various factors affecting how assets and debts are allocated.
The first step in dividing property is determining what qualifies as community property and what is considered separate property.
- Community Property: Includes income earned, savings accumulated, and assets purchased during the marriage. It can also include debts incurred while married, such as credit card balances, loans, or mortgages.
- Separate Property: Includes assets or debts acquired before marriage and gifts or inheritances received by one spouse during the marriage. Separate property is not subject to division in a divorce.
Disputes often arise when one spouse claims that certain assets are separate property, requiring proof of their separate status, such as documentation showing when and how the asset was acquired.
The next step is determining its value after identifying what qualifies as community property.
This can include real estate, vehicles, bank accounts, retirement accounts, investments, businesses, and personal property. Valuing assets can be complex, especially for properties that have appreciated over time, business interests, or investments that fluctuate in value.
Professional appraisers or financial experts may sometimes be needed to provide accurate valuations. Our law firm partners with professionals throughout the state to ensure our clients’ assets are fairly assessed during their divorce proceedings.
What Factors Influence the Division of Community Property During a Texas Divorce?
Texas family courts consider several factors when deciding how to divide community property.
They include:
- The earning capacity of each spouse.
- The age and health of each spouse.
- The education and employability of each spouse.
- Custody of minor children and child-related expenses.
- Fault in the breakup of the marriage, including issues like adultery or domestic violence.
These factors allow judges to tailor property division to the specific circumstances of each case. For example, a spouse with primary custody of the children may receive a more significant share of the family home, or a spouse who sacrificed career opportunities for the marriage may receive more assets to balance the earning disparity.
How is Family Debt Divided During a Texas Divorce?
Dividing debts can be as challenging as dividing assets. In Texas, debts incurred during the marriage are generally treated as community debts, meaning both spouses are responsible for them, regardless of whose name is on the account.
This includes credit card balances, personal loans, and medical debts. However, debts incurred before marriage or related to separate property are typically considered individual and not divided in a divorce.
Disputes can arise when determining who should be responsible for specific debts, particularly if one spouse feels the debt was incurred unfairly or for purposes that didn’t benefit the marriage. Additionally, while a divorce decree may assign responsibility for paying off certain debts to one spouse, creditors can still pursue either spouse for unpaid community debts, leading to potential financial complications even after the divorce is finalized.
Are You Facing Property Division Challenges Associated with Your Texas Divorce? The Carlile Law Firm Can Help
Dividing community property during a Texas divorce is often one of the most challenging aspects of ending a marriage. With so many factors at play, disputes can quickly arise, making it essential to understand how community property laws work and what you can do to protect your interests. By knowing your rights and working with legal and financial professionals, you can navigate the complexities of property division and move forward with greater economic security.
If you’re facing a divorce in Texas, consult our experienced family law attorneys in Marshall to guide you and advocate for your best interests, starting with an initial phone call to our law office dedicated to representing our clients’ best interests.
