How Does Texas Divide Property During a Divorce?
Judges usually, but do not always, divide community property 50-50.
Most people know that Texas is a community property state. However, unlike California and some other community property jurisdictions, Texas is a presumptive community property state. The presumption is almost conclusive and almost irrebuttable. Absent extraordinary circumstances, judges divide marital property (debts and assets) 50-50.
A Ft. Worth family law attorney gives divorcing individuals a strong voice in this process. Being a strong voice is a process that begins with a thorough case evaluation. Lawyers know the law and they know how to make the law work for people. Then, based on this evaluation, lawyers simply plan their work and work their plans. This straightforward approach often produces results that exceed all expectations.
Property Classification
The 50-50 presumption only applies to community property. Separate property belongs to the spouse whose name is on the title. Usually, separate property is any property acquired before the marriage or by gift.
The classification process is not as straightforward as it seems. A Ft. Worth family law attorney must deal with issues like transmutation.
Transmutation is the conversion of separate property to community property, or vice versa. Assume Wife bought a vacant rental home before the marriage. After the marriage, Husband uses a wedding gift from his parents to fix up the house. After these renovations are complete, demand increases. A renter moved in and a waiting list formed.
In many states, depending on the additional facts, that house, as well as all future rental income, could be Wife’s separate property, community property subject to division, or Husband’s separate property. However, informal transmutation is illegal in Texas. Typically, separate property only becomes community property (or vice versa) if a written agreement, which is signed by both spouses, clearly states the intent to change the property’s character.
For instance, in this example, if Wife signed over the title to Husband, the house is most likely still her separate property, unless the deed has a written clause regarding transmutation and both spouses signed that document.
So, in the Lone Star State, property transmutation is usually limited to premarital agreements. To stay with this example, Wife may sign over the vacant house to Husband before the marriage, figuring the property is worthless and she doesn’t want to pay taxes and maintenance. Wife may regret that decision if Husband fixes up the house and he basically gets money for nothing.
Property Division
Texas law requires just and right property divisions. If a 50-50 division would not be just and right, usually because that disposition would impose an unfair burden on one spouse, some division factors include:
- Length of the marriage,
- Post-divorce resources available to each spouse,
- Standard of living during the marriage,
- Custody of minor children (it’s usually in the best interests of children for them to remain in the family home),
- Fault in the breakup of the marriage, and
- The Homemaker Factor (one spouse gave up career advancement opportunities to become a full-time caregiver).
A Ft. Worth family law attorney settles most divorce property division disputes out of court. Divorce settlements reduce legal fees, give spouses more control over the outcome, and create more civil environments.
Work With a Detail-Oriented Tarrant County Attorney
Although Texas is a community property state, divorce property division is a complex matter in the Lone Star State. For a confidential consultation with an experienced family law attorney in Ft. Worth, contact the Law Office of Kyle Whitaker by calling 817-332-7703 or going online now. The sooner you reach out to us, the sooner we start working for you.