Divorcing couples in Texas must go through property division as part of their settlement. Texas is a community property state, so it’s important to know how this works.
What are the laws of community property?
Community property laws mean that property must be divided equally when a married couple gets a divorce. This differs from equitable distribution, which sees a judge determining what’s considered fair and equitable and not necessarily equal when property is divided.
If you are divorcing in a community property state, you might run into a dispute with your spouse over how your property should be split. It’s easy to end up in this situation when property you believed to be yours alone is deemed marital property. If you don’t have a prenuptial agreement in place, you may not be able to protect certain property.
What’s considered community and separate property?
Community property is any property acquired by either spouse during the marriage and includes the following:
- Wages
- Mortgages and the marital home
- Furniture bought during the marriage
- Interest income from business operations and investments
In addition to these things being divided during divorce, retirement accounts and debts acquired by either or both parties during the marriage are subject to division.
Separate property is not subject to property division upon divorce and includes the following:
- Separate bank accounts
- Gifts given to each person
- Inheritances awarded to each party separately
- Personal injury awards
- Property acquired after the marriage
Exceptions to 50/50 property division
Property might not always be divided 50/50 even in a community property state. For example, if a marriage ends through a fault divorce, the spouse found to be at fault might receive less.
The health of either spouse could determine that the division of property will not be equal. Age differences can factor in as well. If a couple has a large age difference and one person is at the age of retirement or near it, the split might be something other than 50/50.
Couples with drastically different earning capacities might get an exception to the 50/50 property division rule.