HOW DO TEXAS COURTS DIVIDE PROPERTY/ASSETS IN A DIVORCE?
Texas is one of the few unique community property states. Community property means any property acquired in the marriage by a spouse unless otherwise classified as separate property. The exception to this is property acquired by gift, devise or descent. In Texas, the presumption is everything is community property unless rebutted.
What Does Community Property Include?
Community property in Texas can be characterized as the following:
1. Income of either spouse during the marriage
2. Property purchased with income during the marriage
3. Real estate purchased during the marriage
4. Dividends, Interest, and capital gained earned on community property
5. Dividends and interests earned on either spouse’s separate property during the marriage
6. Pension, Retirement, Any Employee Benefit Sharing Plan accrued during the duration of the marriage
Community Property and Divorce
When splitting community property in Texas, the Texas Family Courts follow the “just and right” provision. Often times clients interpret this to mean an even 50/50 split which is not true at all. A “Just and Right” provision simply means that the division of the property must be equitable under the circumstances. In some cases it may mean 50/50, 60/40, 70/30 etc. The court looks at fault in the breakup of the marriage, disparity of earning power between the spouses, health of spouses and future employability of a spouse.