When couples face a divorce in Texas, there’s a common question that we often hear: How will our assets and debts be divided?
Many assume Texas courts mandate a straightforward 50/50 split since it is a community property state. However, the answer is more complex. While Texas law does classify most property acquired during marriage as community property, it does not mandate an even 50/50 division in divorce.
Instead, Texas courts divide property in a way that is “just and right,” meaning the split considers various factors to ensure fairness rather than strict equality.
Our experienced divorce attorneys in Bryan, Texas, can guide you through the specific factors that influence how courts decide to divide marital assets in Texas.
What is community property in Texas?
Community property means property, assets, and debts acquired during a marriage by either spouse. In contrast, separate property might also include a gift given only to one spouse or, for example, a spouse’s inheritance.
Top examples of community property include:
- Your shared home
- Additional homes (vacation homes, investment properties, etc.)
- Cars, boats
- Furniture, appliances, and other household items
- Your income earned through employment during the marriage
- Pensions, 401k contributions, and other retirement accounts
- Checking and savings accounts
- Any debts incurred during the marriage (mortgages, student loans, personal loans, medical debt, etc.)
How is community property divided in Texas?
As mentioned above, community property is divided “in a manner that the court deems just and right.” This approach means that rather than automatically dividing assets equally, the court carefully reviews each couple’s circumstances to decide a fair split.
Factors the court evaluates when dividing assets and debts include:
- The length of the marriage
- The age and health of each spouse
- The contributions, income, and earning capacity of each spouse
- The economic circumstances of each spouse (for example, relevant tax consequences or education and future employment prospects)
- Child custody arrangements and the financial needs of any children involved
- Behavior during the marriage, such as misconduct involving adultery or substance abuse
- Any existing agreements, such as a prenuptial agreement, regarding property division
The court will also consider any agreements the spouses have made regarding the division of assets, such as a prenuptial agreement.
What happens when ex-spouses can reach an agreement on their own?
When both spouses agree on how to divide property, they can propose their plan to the court. The judge will review the agreement to confirm that it is “just and right” under Texas law. If the court approves, the agreement is included in the final divorce decree.
If the court finds the proposed division unfair, it may ask the couple to reconsider their terms or hold a hearing to resolve the issue.
How can community property be avoided in Texas?
While Texas generally treats property acquired during marriage as community property, there are steps couples can take to classify certain assets as separate property:
Enter into a prenuptial agreement: In a prenuptial agreement, the couple can specify which property and assets will be considered separate property and which will be considered community property. A prenup also sets the terms for how assets will be divided if a divorce occurs.
Keep all assets and property separate. All assets and property should be in the name of the individual spouse who owns it and should not be used to pay for expenses related to the community property, such as the mortgage or household bills.
Keep records of separate property contributions. To ensure that property is considered separate property in the event of a divorce, couples should keep detailed records of separate property contributions. These documents include bank statements, receipts, and other documentation showing the source of the funds used to acquire the property.
Contact the Bryan, Texas Divorce and Divorce Property Division Lawyers at C.E. Borman & Associates
If you’re considering divorce, consulting with a knowledgeable divorce attorney can make a significant difference. Our Texas-based divorce and family law firm is here to address your questions, help you understand your options, and support you at every step of the process.
From initial consultations to finalizing your divorce, we’re committed to guiding you through each stage with straight talk, honest advice, and compassion. Contact us online or by calling 979-200-4725.
