Most people contemplating divorce in Texas have a lot of questions about the process. They aren’t familiar with state law and may worry about the potential outcome of divorce proceedings. They may seek information from the wrong types of sources.
Perhaps a coworker who divorced completed the process in another state. The information that they share may not be relevant given the unique laws in Texas. Information online can also be unreliable. Someone worried about their finances while preparing for a divorce needs reliable and accurate information.
What happens during community property division in Texas?
The process focuses on fairness
Spouses without a marital agreement who cannot settle property division matters can litigate. They defer to a judge who applies the Texas community property statute to their situation. Many people mistakenly believe that community property rules dictate a 50/50 split of all marital property. Thankfully, that is not actually the case. Judges do typically start with the assumption that an even split of property is fair, but they may quickly arrive at a different final determination.
A Texas family law judge has the authority to allocate both property and debts in a manner that they think is fair given marital circumstances. The spouses begin by making disclosures about their assets to the courts. A judge them looks over all of the resources and debts they share to decide how they could potentially split those up in a fair manner.
What assets are subject to division?
Typically, any property or income that spouses acquire during the marriage is at risk of division when they divorce. Unless they have a marital agreement preserving certain resources as separate property, anything either spouse acquires during the marriage technically belongs to both of them.
An account or asset held only in the name of one spouse can be subject to division. Judges can order the direct division of assets and the sale of property in some cases. They can use debts or financial support to balance out the division of marital resources. They have a great deal of discretion when arriving at final property division terms. For many, the uncertainty of litigated asset distribution is a powerful incentive to compromise. Spouses have the option of reaching their own settlements through mutual agreement and bypassing the litigated process.
Becoming familiar with community property rules in Texas can empower those preparing to negotiate before a divorce. Those who understand how the law handles such situations can set appropriate goals and counter unreasonable expectations held by a spouse, if applicable.