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Asset Division During a Divorce

On Behalf of | Feb 3, 2023 | Asset Division

When a couple gets divorced in Texas, dividing their assets and liabilities is one of the process’s most significant and complicated aspects. In Texas, assets and liabilities are divided equitably, meaning that the court will strive to divide them fairly but not necessarily equally. In this blog post, we’ll go over the basics of asset division in Texas and what you need to know if you’re going through a divorce in the state.

What Assets and Liabilities Are Included in Asset Division in Texas?

In Texas, all assets and liabilities that were acquired during the marriage are considered community property and are subject to division in a divorce. Community property includes assets such as:

  1. Real estate (homes, land, etc.)
  2. Personal property (cars, furniture, jewelry, etc.)
  3. Bank accounts
  4. Retirement accounts
  5. Businesses
  6. Investments
  7. Debt (credit card debt, mortgages, etc.)

Separate property, on the other hand, is the property acquired before the marriage or through inheritance or gift during the marriage. Separate property is not subject to division in a divorce, although it can be used to offset a division of community property.

How Is Community Property Divided in Texas?

In Texas, community property is divided equitably, meaning that the court will strive to divide it fairly but not necessarily equally. The court will take into account several factors when determining an equitable division of community property, including:

  1. The length of the marriage
  2. The age, health, and earning capacity of each spouse
  3. The contributions of each spouse to the marriage, including contributions to the family’s financial well-being, care of the home and children, and other contributions
  4. The future needs of each spouse
  5. The separate property of each spouse
  6. Any other factors the court considers relevant

What If the Spouses Cannot Agree on the Division of Community Property?

If the spouses cannot agree on the division of community property, the court will divide it for them. In these cases, the court will consider the factors outlined above and determine an equitable division of assets and liabilities.

Can the Division of Communal Property Be Modified After the Divorce is Finalized?

Sometimes, the division of community property can be modified after the divorce is finalized. This may occur if there is a change in circumstances, such as a significant increase or decrease in the income of one spouse or if one spouse receives an inheritance or other significant asset after the divorce. If you believe that the division of community property should be modified after the divorce, you should consult with an attorney.

What Are the Consequences of Failing to Divide Communal Property in a Divorce?

If community property is not divided in a divorce, it can cause significant problems. For example, one spouse may try to sell or transfer an asset that was not divided, which can result in legal disputes. Additionally, failing to divide community property can lead to disputes over who is responsible for paying debts acquired during the marriage.

For more information on the awarding of Marital Property during the dissolution of marriage, check out the Texas Family Code.

What Should You Do if You’re Going Through a Divorce in Texas?

If you’re going through a divorce in Texas, it’s essential to seek the advice of an attorney. An attorney can help you understand your rights and obligations concerning the division of community property and protect your interests. Additionally, an attorney can help you negotiate a settlement with your spouse and represent you in court if necessary.

In conclusion, asset division in Texas is a complex process that requires a thorough understanding of the law and the liabilities. At Izzo & Associates, we can help you navigate the complicated process, so you no longer have to worry about it. Check out our Asset Division Services Page for more information.