Texas is a community property state, and almost all property that is acquired by either spouse during their marriage is divided equally once they divorce unless the parties otherwise agree. If the court determines that one spouse is to pay the other alimony, these payments may affect the property division ordered by the court. The court will look at a number of factors to determine whether and how much spousal support to order.
Texas couples who are considering divorce will also need to consider asset division. One question that may arise is whether inheritances and gifts go to one spouse or are split between both spouses. Texas is a community property state, but this does not mean that an inheritance is automatically divided 50/50 between spouses. In fact, inheritances and gifts are considered to be separate property as opposed to marital property.
The end of marriage in Texas could mean significant changes to people's finances as one household gets split into two. Assets and liabilities must be divided, but how people go about property division typically leaves room for many mistakes. Failing to be smart about money matters in divorce could lead to problems, including unnecessary taxes and assets that are less valuable than the ones given to a spouse.
Texas is one of 10 states that operate according to community property law. Sometimes community property is referred to as marital property. These laws are used to govern how debt and assets are divided in a divorce. Some of these states divide the debt and assets equally between divorcing couples while other states, including Texas, use equitable division. Equitable division allows judges to use discretion when distributing the assets and debts to each member of the divorcing couple.