The impact on finances is often one of the biggest worries in a Texas divorce. You may feel confused, overwhelmed and worried about how you will adjust to post-divorce life, due to living on one income or losing valuable property. It helps to have a basic understanding of Texas property laws.
Texas is a community property state
Community property is generally all property you and your spouse acquire during your marriage, with some exceptions.
In community property states such as Texas, community property is divided equitably, or fairly. While this often means equally, an equitable division of community property does not always mean 50/50.
Texas courts usually looks at a 50/50 split as an initial starting point but from there, it examines other factors that could justify a more unequal split.
Some of these factors include:
- Each spouse’s contributions to the marriage
- The earning capacity of each spouse
- The length of the marriage
- The specific needs of each spouse
Separate property
Another factor is separate property. This is property acquired by each spouse prior to marriage or after the date of separation that has not mixed with community property. When separate property mixes with community property, it becomes community property.
For example, an inheritance you received prior to marriage is separate property. But if you use part of that inheritance to put a down payment on a home owned for you and your spouse, the inheritance is now community property.
However, the inheritance remains separate property, a court considers this when determining how to divide community property. An unequal division in favor of your spouse might be fair in the court’s eyes because you have your inheritance.
Just as your marriage is unlike anyone else’s, the law recognizes that each divorce is different. If you are worried about any of these factors going against you in divorce, getting advice on how they apply to your specific situation can help you know what to expect going in and make the process smoother.