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3 tips on community property in a Texas divorce

If you are facing a divorce in Texas, you will likely need to divide some assets and property in the divorce process with your spouse. Whether you are facing an amicable divorce or heading toward a courtroom litigated trial divorce, it can be helpful for you to understand some basic facts about property division in Texas.

Here are three factors to take into consideration in terms of property laws and how they apply to divorces in Texas. With this information in hand, you can better prepare to select a qualified divorce attorney for your proceedings and discuss the future of your marital assets.

1. Texas is a community property state

There are a handful of states that have laws known as community property when it comes to divorce, and Texas is one of them. Many people think community property means the divorcing couple splits marital assets equally 50/50, but this is not always the case. There are several factors that the law takes into consideration in terms of dividing property. Keep in mind that community property also includes debts acquired during the marriage.

2. Not all property is community property

Another category of property under Texas law is separate property. Property that you owned before coming into the marriage is separate property and therefore not subject to division under the community property law. If you acquired property during the marriage through a gift or an inheritance, this can also qualify as separate property, as can personal injury recovery. There are many aspects of property and asset division that go into a divorce, which is why it is a good idea to discuss this at length with your divorce attorney.

3. Be aware of possible hidden assets in a high-net-worth divorce

Sometimes, especially in divorces where the couple has a high net worth, one spouse may attempt to hide assets in order to avoid having them divided as community property. This is a serious infraction, and your divorce attorney can help you craft an effective strategy for uncovering any hidden assets. Some ways that spouses attempt to hide assets include hidden bank accounts, undeclared income, overpayment to the IRS (to reclaim a refund later), and transferring stock or investments to others such as family members. If you suspect your spouse is hiding assets, you need to tell your divorce lawyer about your concerns.

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