Navigating a divorce in Texas requires a clear understanding of how property is divided, which can significantly affect your financial future after the divorce is done. As property division attorneys in Collin and Denton Counties, we have guided many clients through the complexities of the dissolution process. Here are some essential “do’s and don’ts” for dividing property in a Texas divorce, reflecting the latest statutes and laws as of 2024.
Understand the Difference Between Separate And Community Property
Understanding the difference between separate and community property is crucial in Texas, a community property state. Most property acquired during a marriage is considered community property and would be equitably divided. However, separate property, which includes assets owned before the marriage or acquired as a gift or inheritance, generally remains with the original owner. This knowledge empowers you to document and prove that property is separate, as the default assumption is that all property is community property.
Do Document Everything
Documenting everything is your best defense in a divorce proceeding. Keep detailed records of all assets, debts, and financial transactions. This includes bank statements, property deeds, vehicle registrations, and more. Having these accurate records can provide a sense of security and preparedness, simplifying the division process and ensuring a fair distribution of assets.
Do Consider The Impact Of Debts
Just as assets are divided, so too are liabilities. It’s important to be cautious and mindful of the impact of debts incurred during the marriage, which are typically considered the responsibility of both partners. Ensure you know what debts exist and consider them in your negotiations or trial strategy.
Don’t Forget About Retirement Accounts
Retirement accounts are often among the largest assets divided during a divorce. Special rules apply to these accounts, and dividing them can require specific court orders, like a Qualified Domestic Relations Order (QDRO). Failing to handle these accounts correctly can result in significant penalties and taxes, or just a significant delay on the division of that property.
Don’t Attempt To Hide Assets
It might be tempting to hide assets to keep more for yourself, but this is presumptively fraud and can result in severe consequences, including a less favorable division of other assets and potential legal penalties or sanctions in your lawsuit. Transparency is key to a fair and expedient divorce process, and helps to ensure you won’t experience a ‘re-do’ of your divorce months or years later.
Don’t Rush The Process
While it’s natural to want to conclude a stressful and emotional process like divorce quickly, rushing through a property division can lead to mistakes and oversights. Take the time to thoroughly review all assets and understand their value and the tax implications of their division for your financial future.
As you move forward with your divorce, keeping these do’s and don’ts in mind can help protect your interests and ensure a fair division of property. Remember, each divorce is unique, and navigating the division of assets can be complex.
Texas Property Division FAQs
What constitutes separate property in Texas?
Separate property includes anything one spouse owned before the marriage, as well as gifts and inheritances received by one spouse during the marriage. It also includes some types of disability claims, personal injury recoveries, and related items.
Proving separate property requires clear and convincing documentation or testimony. This could be a pre-marriage car registration or a copy of the will showing the inheritance.
How are debts divided in a Texas divorce?
Even though the debt actually belongs to whoever reached the agreement with the creditor, debts incurred during a marriage are generally treated as joint debts and are divided equitably between the spouses. This includes credit card debts, loans, and mortgages.
What happens to the family home in a divorce?
The division of the family home depends on several factors, including whether it is considered community or separate property, whether there exist any reimbursement claims among the different community estates, and the financial circumstances of each spouse. Sometimes the home may be ordered to be sold, or one spouse may buy out the other’s interest.
How is property actually divided in a Texas divorce?
Property is divided based on what the court deems to be a “just and right” division of the community estate. While this often means equally, the court can consider factors like each spouse’s earning potential, age, health, and contributions to the marriage when deciding on a different percentage division.
Can a prenuptial agreement affect property division?
Yes, if you have a valid prenuptial agreement, it can dictate how property is divided, potentially overriding the default rules of community property.
If you have specific questions about your case, contact our attorneys at Orsinger, Nelson, Downing & Anderson for a thorough case review. Our guidance can help you navigate the complexities of property division with confidence.
Call Property Division Attorneys In Dallas To Protect Your Financial Interests
If you’re facing a divorce and need help with property division, don’t hesitate to reach out to us at Orsinger, Nelson, Downing & Anderson. We understand the intricacies of Texas divorce law and can help you navigate this challenging process. Contact our property division attorneys in Dallas at Orsinger, Nelson, Downing & Anderson by calling (214) 273-2400 to schedule a consultation. We’re here to help you secure the best possible outcome for your future.