Dallas Property Division Lawyer

Protecting Your Finances During a Divorce

During divorce proceedings, property which was acquired during your marriage will be inspected and divided up according to a formula that is outlined in law. This can unfortunately be the source of much discord between spouses, particularly if the court awards the property unequally. When children are involved, property division is much more complicated.

At the Mathur Law Offices, P.C., we understand how important it is to receive your deserved property. You shouldn't have to fight for your best interests on your own. A Dallas divorce lawyer from our firm can be the asset you need in your corner and will defend you with compassion and skill. 

Need help with property division in your divorce?
Contact us today at (888) 867-5191 for legal guidance and protection of your assets.

Community Property vs. Separate Property

Property is divided into two main categories regarding divorce property settlement.

• Community property is defined as property that was acquired during the course of the marriage. Even if the asset is in only one person's name, it is still considered community property at the time of the divorce if it was acquired during the marriage.
• Separate property is property that was owned before the marriage took place, property in the form of an inheritance or gift, compensation recovered by the marriage partner from a case, or anything which is exchanged for property which falls under these headings.

Salary, cars, retirement savings, and more are all subject to community property laws and if you do not have an attorney to protect your assets, you may lose half of your ownership. Ensure that you notify your lawyer early on in the divorce process if you own separate property.

Factors Affecting Property Division in Texas

When dividing property in a Texas divorce, the court takes several important factors into account. Understanding these factors can help you prepare for the division process.

• Length of the Marriage: The longer the marriage, the more likely it is that the court will divide assets equally. In longer marriages, the court might consider both spouses’ contributions over time.
• Earning Capacity and Financial Contributions: The court will look at each spouse's earning capacity, which includes current income, future income potential, and contributions to the marriage. If one spouse earned more or was the primary breadwinner, the court might award them a larger share of the property.
• Age and Health of Each Spouse: If one spouse is older or has significant health issues, the court might consider how these factors could affect their future earning capacity and need for financial support.
• Custody of Children: When children are involved, the custodial parent might receive a larger share of the property, especially if it’s in the best interest of the children. This is often the case when the custodial parent is more likely to have additional expenses.
• Disparities in Contributions: The court also considers non-financial contributions to the marriage, such as homemaking, childcare, and support in the other spouse’s career. These contributions can affect the court’s final decision.

Protecting Your Separate Property

It’s important to protect your separate property during a divorce, as it may not be divided by the court. Separate property includes assets owned before the marriage, inheritances, and gifts.

• Documenting Separate Assets: Keep clear and organized records of assets you owned before the marriage. This could include property deeds, bank statements, and tax returns.
• Keep Separate Accounts: Maintain separate bank accounts and avoid mixing separate property with community property. For example, avoid depositing a gift or inheritance into a joint account.
• Gifts and Inheritances: If you receive a gift or inheritance during the marriage, it is considered separate property as long as it is kept separate from community property.
• Keep Boundaries Clear: Avoid using separate property for joint purposes (e.g., putting your inheritance toward the down payment on a home shared by both spouses), as this can cause separate property to be deemed community property.

Debts in Divorce and Property Division

Debts are also an important factor in the property division process. Just like assets, debts acquired during the marriage are typically divided by the court.

• Community Debts: In Texas, debts that are accumulated during the marriage, like mortgages, credit card debts, and personal loans, are considered community property and are divided equally between both spouses.
• Separate Debts: Debts that one spouse incurred before the marriage or after the separation may remain their responsibility. However, if they are used for the benefit of both spouses, they may be considered community debt.
• Mortgage and Home Debt: If there is a mortgage on the home, the court will consider who will keep the home, and who will be responsible for the mortgage payments.
• Handling Debts Fairly: While the goal is to divide both assets and debts fairly, in some cases, one spouse may take on a larger share of the debt to balance out the division of property.

Understanding how debts are handled during divorce can ensure you are prepared for what lies ahead and help avoid confusion during the process.

How is property divided in Texas?

Texas is a community property state, which means that any income and property acquired during the marriage is jointly owned by both spouses. Thus, in the event of a divorce, the property must be divided equally according to the discretion of the court. Community property typically includes real property, such as the home, and intangible property, like income and benefits.

The court will consider the unique circumstances of each marriage in order to make a fair property division verdict.

Unequal divisions may be a result of the following:

• A disparity in the spouses earning capacities
• Custody of any children and their needs
• The needs of each spouse
• Differences in education

If child-raising responsibilities fall more heavily on one spouse, the court is likely to award that spouse with a greater portion of the property.

Frequently Asked Questions (FAQ)

• How is property divided in a Texas divorce?
  In Texas, property is divided based on community property laws, which state that assets acquired during the marriage are jointly owned. The court will divide the property fairly, considering factors such as the length of the marriage, each spouse’s financial contributions, and custody arrangements for children.
• Can I keep my separate property in a divorce?
  Yes, separate property is not subject to division in a Texas divorce. However, it’s essential to keep records and documentation that prove the property is separate, such as bank statements, deeds, or gift/inheritance receipts.
• What happens if one spouse has more debt than the other?
  Texas courts will try to divide debts equitably, considering factors such as each spouse’s ability to pay and the circumstances of the debt. Debts incurred during the marriage are generally treated as community property, so both spouses are responsible for them.
• Does the court consider fault when dividing property?
  Texas follows a no-fault divorce system, meaning that the court does not take one spouse’s actions (such as infidelity or misconduct) into account when dividing property. The division is based on fairness, not fault.
• Can a postnuptial agreement affect property division?
  Yes, a postnuptial agreement can influence property division by clearly outlining how assets and debts should be divided in the event of divorce. If both spouses agree, it can supersede standard community property laws.
• Can the court change a property division agreement after the divorce?
  Once a divorce is finalized and the property division is ordered, it is usually final. However, in rare cases, if there was fraud, concealment, or a material change in circumstances, the court may revisit the division.
• What if one spouse hides assets during the divorce?
  If one spouse hides assets during the divorce, it’s crucial to bring this to the attention of the court. There may be legal consequences for hiding assets, and the court can reopen the division process if fraud is suspected.

Discuss Your Property Settlement Concerns

Before your property gets divided by the court, it is valuable to obtain support from an attorney skilled in divorce law. The last thing you want is to miss out on valuable assets earned during your marriage and a Dallas divorce attorney from the Mathur Law Offices, P.C. can ensure that this doesn't occur.

Have questions about how your property will be divided in a Texas divorce?
Contact us now at (888) 867-5191 and get the answers you need with a free consultation.