Property Division: Dispelling Three Myths About Community Property in Texas
Texas is one of a minority of U.S. jurisdictions that operates under a community property standard. Under Texas law (Texas Family Code Sec. 3.002), community property is defined as “the property, other than separate property, acquired by either spouse during marriage.” Community property is owned jointly by the spouses. Dividing community property in a divorce can still be incredibly challenging. There are many myths. Within this article, our Pearland divorce lawyer dispels three all-too-common myths about community property in Texas.
1. All Property Held By Spouses is Classified as Community Property
False. This is a big misconception: Not all the property held by spouses is community property. Only “marital” property is jointly owned community property in Texas. Separate property—which often includes pre-marital property—is considered to be separate property in our state. Other types of property—such as gifts and inheritance—may also be deemed separate property in Texas. If you have any questions about whether any specific asset is marital property or separate property, an experienced Pearland, TX, divorce attorney can help.
2. All Community Property is Divided Evenly in a Divorce
False. Many people wrongly believe that during a divorce in Texas, community property is always split 50-50. However, that is simply not the case. While community property is considered to be jointly owned by the spouses, that does not mean that there is a guaranteed split. Instead, Texas law requires a division that is “just and right.” What does this mean? The court looks at several factors to decide how to divide property fairly. These factors include each spouse’s earning potential, who’s at fault in the divorce, the health of each spouse, who has custody of children, and any other factor deemed relevant. To be clear, there is a general presumption that a 50/50 split will ultimately be the designation, but that is never guaranteed as a matter of law.
3. It is Easy to Split Assets When You are Dividing Things in a 50-50 Manner
False. Even if you and your spouse have already agreed that you want to split your property and assets in a 50/50 manner in your divorce, it can still be very difficult to find a solution that works well for everyone. Not all assets can easily be split in half. Who gets the house? Who gets the car? Who gets personal property? What about things like business interests or tax-advantaged retirement accounts? The reality is that many challenges can arise. You need a skilled attorney by your side each step of the way.
Contact Our Pearland, TX Property Division Attorney Today
At The Powell Law Firm, our Pearland divorce lawyer has extensive experience taking on complex property division cases. Have any questions about community property? We are more than ready to help. Contact us today to set up your confidential case review. With a law office in Pearland, we help people with property division cases throughout all of Southeast Texas.
