What is the Property Division?
Explanation: Property division is the process of dividing assets and debts between spouses during a divorce. In Texas, this division is guided by the principle of community property, which generally means that most property acquired during the marriage is considered jointly owned and is divided fairly between the spouses.
Example: “Property division means figuring out who gets what when you get divorced. In Texas, most of what you and your spouse own together will be split fairly between you.”
Community Property vs. Separate Property
Community Property
Includes most assets and debts acquired during the marriage, regardless of whose name is on the title. Examples include income, real estate, and personal property bought with marital funds.
Separate Property
Includes assets and debts that were owned before the marriage or received as gifts or inheritances during the marriage, as long as they are kept separate from community property.
Example: “Community property is everything you and your spouse acquired during your marriage, like your home or joint bank accounts. Separate property is what you owned before the marriage or received as a gift, like an inheritance, if you kept it separate.”
What Happens if Property is Disputed?
Explanation: If you and your spouse cannot agree on how to divide the property, the court will make the decision for you. This often involves a trial where each side presents evidence and arguments.
Example: “If you and your spouse can’t agree on who gets what, the court will decide. You’ll have a chance to present your case, and the judge will make a final ruling.”
Steps in Property Division
Explanation: The process involves several steps:
- Identifying Property: Listing all assets and debts.
- Classifying Property: Determining which items are community or separate property.
- Valuing Property: Appraising the value of the assets and debts.
- Dividing Property: Allocating the assets and debts between the spouses.
Example: “First, you’ll list everything you own and owe. Then, you’ll figure out which items belong to the community and which are separate. After that, you’ll value everything and decide how to split it fairly.”
Explanation: In Texas, property is divided in a manner that is “just and right,” which means fair but not necessarily equal. The court considers various factors, such as the length of the marriage, each spouse’s financial situation, contributions to the marriage, and any fault in the divorce.
Example: “The court divides property in a way that’s fair to both of you. This doesn’t always mean a 50/50 split but considers what’s reasonable given your situation, like how long you were married and each person’s contributions.”
How is Property Divided?
Division of Debts
Explanation: Debts incurred during the marriage are usually considered community debt and are divided similarly to assets. Debts incurred before the marriage or by one spouse alone may be considered separate.
Example: “Just like with property, debts you took on during the marriage will be divided fairly. Debts from before the marriage or solely incurred by one spouse might be considered separate.”
Impact of Property Division on Future Finances
Explanation: The division of property can impact your future financial situation. Consider how the division of assets and debts will affect your long-term financial stability, such as your ability to buy a home or save for retirement.
Example: “How property is divided will affect your future finances. Think about how getting your share of the assets or paying off debts will impact your financial goals moving forward.”