How Will Our Property and Debts Be Divided in a Texas Divorce? 

 Posted on July 27, 2022 in Divorce

Although many states are moving away from community property laws in favor of more fair equitable division laws, Texas is one of the nine states that is still strictly a community property state. In Texas, community property is subject to a “just and right division.” Generally, this requires marital assets and debts to be divided down the middle, rather than allowing each spouse the flexibility to take their fair share. 

The process of dividing assets and debts in divorce is crucial for determining your future financial health. While Texas law usually requires a 50/50 property split, determining what that looks like can be subject to some interpretation and negotiation. To learn more about the asset division process in a Texas divorce, read on and then contact an experienced Texas divorce attorney. 

Does Any of Our Property Belong Exclusively to Me? 

The first part of dividing debt and assets in a divorce is collecting an accurate picture of a couple’s finances and belongings. Certain property may be considered personal rather than marital if it was: 

• Inherited or bought with inherited money

• Gifted to one spouse 

• Owned before the marriage 

These categories are not set in stone. For example, if one spouse owns a home before the marriage and the other spouse moves in and contributes to the house’s increase in value, the increase in value could be considered marital property. 

How Are Marital Assets and Debts Divided in Texas? 

Once a couple has determined which assets are community assets, they are encouraged to negotiate the asset division between themselves. Spouses may trade assets, exchanging items of similar value but varying importance to each spouse. For example, one spouse may want to retain ownership of the marital home while the other spouse wants to maintain ownership of their 401k. As long as both parties agree to the division and it is legal under Texas law, a judge is likely to sign off on the agreement. 

If a couple is unable to achieve a division that both parties feel is fair, a judge may mandate the couples seek mediation. If mediative services are ineffective, then a court may divide the marital assets and debts. A judge may consider many factors when making a decision, including: 

• Each spouse’s education and earning capabilities 

• Each party’s age and health

• Each party’s future potential business prospects 

• The quality of life the not-at-fault spouse would have enjoyed if the marriage had not ended 

• Any personal property each spouse owns 

• Whether one spouse was responsible for accumulating debt 

• How the money from the debt was used 

An attorney can help you present evidence that an asset is personal in nature, negotiate a fair asset division, and argue to a judge in your favor. 

Meet with Galveston, TX Marital Asset Division Lawyer

Having realistic expectations is important for getting a marital asset division that feels fair, but so is having a great Galveston County divorce attorney. At Daniel R. Bacalis, P.C., we are committed to seeking the best divorce settlement under Texas law, including not only matters of marital property but of custody and alimony, as well.  Call us today to schedule your complimentary case review at 409-392-1511. 

Source: 

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm