Adapting to a new lifestyle can be both exciting and challenging. This is especially true for Texas spouses who have decided to file for divorce. The process undoubtedly prompts many life changes, but it does not necessarily have to ruin a person’s finances or way of living. Property division rules in this state are unique from the majority of other states throughout the country.
Texas is one of nine states that operate under community property rules. There are several myths associated with this system. For instance, many people mistakenly believe that community property rules mean there is no such thing as separately owned property in a divorce.
To the contrary, there are circumstances that would allow a spouse to list a specific asset as being separately owned. If he or she received an inheritance that was intended for separate ownership, the court would not consider it jointly owned marital property in a divorce. If spouses signed a prenuptial agreement before their wedding day, the terms of the agreement may also identify certain property as separately owned. Another instance where assets may come under a separate ownership category is if one spouse has received compensation for damages in a personal injury lawsuit.
It is true that a Texas family court judge typically divides all marital property 50/50 in divorce. The question is: What is to be considered marital property in a specific case? It is critical that a concerned spouse learns as much as possible ahead of time about community property division laws, so that he or she is better prepared to protect his or her interests during proceedings.