Dividing assets can be one of the most complicated aspects of a divorce. Texas is a community property state, so there are specific legal guidelines for the division of assets. Here’s a brief explanation of those guidelines from a Houston divorce attorney.
How Are Assets Divided During a Divorce in Texas? A Houston Divorce Attorney Explains
Community Property vs. Separate Property
Texas law makes a distinction between community property and separate property when dividing assets during a divorce. Assets as well as debts acquired during the marriage are considered to be community property, regardless of which spouse acquired them. This means that earnings, real estate, and even debts are typically considered community property, no matter whose name is on the title or who earned the income, and are subject to division upon divorce.
Separate property refers to any assets owned by one spouse before the marriage and also to gifts or inheritances received by a spouse during the marriage. If a spouse can clearly prove that an asset is separate property, it is not subject to division during the divorce. A separation agreement lawyer can help ensure that the terms of property division are fair and legally sound, especially when there is a dispute over what constitutes separate or marital property.
Equitable Distribution in Texas
Assets will be divided equitably, but not necessarily equally. Texas courts aims for a “just and right” division of property, which may result in an unequal split based on various factors, such as the length of the marriage, each spouse’s earning capacity, contributions to the household (including homemaking), and fault in the breakup of the marriage.
Valuing and Dividing Complex Assets
More complex assets, such as retirement accounts, real estate, businesses, and investments, can present significant challenges in asset division. Retirement accounts, for example, are often among the most valuable assets in a marriage. The court may also order an actuarial valuation to determine the current and future value of these retirement benefits.
For real estate, the court may order the sale of the property and the division of proceeds, or one spouse may be awarded the home while the other receives a larger share of other assets to balance the division. For business owners, valuing and dividing a business can be particularly challenging. Depending on the situation, the business may be sold, or one spouse may be awarded the business in exchange for other assets. This is where an experienced attorney can be a valuable resource. Click here to learn more.
Managing Debts During a Divorce
In Texas, debts incurred during the marriage are generally considered community property, regardless of who incurred them. This means that both spouses are responsible for repaying them even after the divorce is finalized. In dividing up responsibility for debt, the court may consider the purpose of the debt, the ability of each spouse to repay it, and which spouse will retain certain assets tied to the debt. For example, if one spouse is awarded the family home, that spouse may also be responsible for the mortgage, even if both spouses originally signed the loan.
Dividing assets during a divorce in Texas involves a careful analysis of community and separate property, an equitable but not necessarily equal division of assets, and the management of debts. Understanding Texas law and working with experienced professionals can help ensure that your rights are protected and that the division of assets is handled fairly.
Keep up-to-date with breaking news and updates on Usaupmagazine.com
