When couples in Texas plan to divorce, the financial repercussions of the end of the marriage can often be equally or even more profound than the emotional complications. The division of marital property can lead to significant changes in how both former partners live their lives. It is important to understand how property division works in a divorce, especially because Texas is only one of nine states across the country that uses a community property system to divide assets after a split.
The most common form of property division in a divorce, used in 41 states, is equitable distribution. This form of asset division looks toward achieving a fair, equitable distribution of marital property, based on a number of criteria. On the other hand, community property states like Texas tend to view all assets acquired during a marriage as belonging equally to both partners and therefore rightfully split in half.
Some types of property are considered separate assets even in community property states. These can include personal gifts, like birthday presents, as well as inheritances. In order to retain that classification as separate property, it can be important for the spouse who receives these assets to avoid commingling them with marital funds during the marriage. In addition, the assets that each partner brought into the relationship would continue as their individual property after the divorce is finalized. In addition, couples can come to an agreement to handle property differently.
When dealing with the division of property in a divorce, it can often be difficult for estranged couples to reach a resolution on their own. This is why many choose to let their respective attorneys handle negotiations.