Texas Property Division | TX Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

Once a couple gets divorced, the marriage's assets and debt must be sorted out by the courts. Legally speaking, the courts must turn the 1 household that existed during the marriage into 2 separate households. One of the many tasks a court has to do is engage in property division, specifically Texas property division.

No divorcing spouse should go to court without the guidance of a licensed Family Law attorney. Property division laws can be complex, vary from state to state and your divorce case may be more complicated than a friend or family member's was.

Property Division Divorce Laws in Texas

The purpose of Texas property division laws is to make sure that Texas marital property is allocated equitably to each spouse as Texas divorce property, generally in a 50-50 split. If a 50-50 division would not be equitable, the courts may choose to divide the property in a more equitable fashion under Texas case law.

Texas is a community property state. This means that with regard to Texas divorce assets, each spouse has a ½ vested interest in the property of the other spouse that should be considered in dividing Texas divorce assets or Texas divorce property. The only property that does not come into the court's distribution is that which is listed as an exception under Texas Family Code §3.001.

What is considered Marital and Non-Marital Property?

Under Texas Family Code §3.002, Texas marital property is all property acquired during a marriage except for separate property under §3.001. Property acquired during the marriage is presumed to be community property under Texas Family Code §3.003(a).

Non-marital or separate property is defined under Texas Family Code §3.001. It consists of:

Property owned or claimed by the spouse before marriage
Property acquired by the spouse during marriage by gift, devise, or descent
Recovery for personal injuries suffered by a spouse except that for lost earning capacity during the marriage

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is either a 50-50 division or property or the most equitable distribution under Texas law.

Judges decide how a marriage's assets should be divided based on factors such as one spouse's waste of an asset and the length of the marriage. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award part of the money to each spouse in an equitable split.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount will be divided 50-50 or based on the court's determination that one spouse would not be treated fairly under a 50-50 split.
Retirement Plans: The amount accrued during the marriage is divided equitably.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would most likely be entitled to 50% of the income acquired during the 20 year marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values as determined by the court. May be sold or given to a spouse outright.
- Example 1: A spouse owns a boat. The boat will most likely be sold with proceeds divided among the spouses or may be given to a poorer spouse based on the court's discretion.
- Example 2: A car has a shared title. The car may be sold with the proceeds in a 50-50 split or given to a poorer spouse if a 50-50 split would be unfair.
Insurance: The portion paid for or acquired during the marriage is divided equitably between the spouses.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award money to the other spouse to buy new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The spouse will be entitled to the portion of the benefits that accrued during the marriage.

Settling Disputes in a Divorce Case with Property and Asset Division

If a spouse is not complying with the property division order or you want to change the division, you may go back to court to seek enforcement or modification just as with any other judgment. The court will then decide how to proceed.

Generally, the trial court has great latitude in making decisions on property division and appellate courts will not change the order unless there was an abuse of discretion in the trial court. This is very difficult to prove.

Help From a Texas Property Divorce Lawyer

Retaining a Texas property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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