During a Texas divorce, the parties argue over child custody, child support, spousal support, child visitation and more. One area that can be financially and emotionally challenging is property division.
Since both sides might lay claim to a specific property, it can take time to determine how to split it or if it should even be split at all. As property is inventoried and valued in a divorce, there will be separate property and community property. In some cases, it is relatively easy to differentiate between the two.
The parties might agree on who owns what and have a smooth path to ending the marriage and moving on. In others, however, it is more complicated. Regardless of whether the couple is on good terms or it is more acrimonious, it is imperative to understand the law for marital and community property.
Is the property separate or community?
According to the law, separate property was owned by one spouse or the other before they were married. If, for example, a husband owned a home before the couple got married, that will be theirs after the divorce. The same is true for sentimental items, automobiles, jewelry and collectibles.
It also applies to gifts that were given while the couple was married. A husband giving a ring or necklace to his wife would not be community property even though he purchased it. An inheritance is also separate property as is any recovery from a personal injury claim.
Community property is that which the parties acquired during the marriage and does not fall into the above categories. It is important to remember there is nuance with these issues. If they purchased a home together – independent of who was the higher-earning spouse – they will need to split its value.
There are settlement options to explore such as one person getting possession of the home and living there while “trading” marital property as a form of compensation. This is common in situations where a parent is granted custody of a child and they do not want to disrupt the child’s life any more than is necessary. Part of that will mean letting the child remain in the home, stay at the same school and have the same social situation.
In general, the court will look at when the property was acquired and how it was classified at the time. Some people make purchases and contributions to purchases before the marriage and their name is not on the title. This can be a source for dispute. Another challenge is if there were improvements to a property one person held and its value rose after the marriage because of assistance from the other person.
If one person owned a business and the other had ideas or worked there to help it garner more income, they could have a claim to compensation for it. The same is true for a home where they made substantive improvements like a renovation after the marriage. This is referred to as commingled property.
Being protected is crucial in a Texas divorce
Disputes over property division can happen to anyone no matter how much property they have, its value and their income. It is preferable to come to a negotiated settlement, but that is not always possible.
From the start, it is wise to keep records of what is owned, who acquired the property, the financial factors and more. Consulting with professionals who understand all aspects of family law can help with achieving a positive result and retaining as much property as possible.