Dividing Property Fairly Under Texas Law
Texas is a community property state, which means that most property acquired during the marriage is considered jointly owned and subject to division during divorce. Whether you’re concerned about your home, retirement accounts, or a business, understanding how Texas law treats community property is essential to protecting your interests.
At Denis Law Group, we guide clients throughout Central Texas through every aspect of divorce, ensuring their financial rights are preserved.
What Is Community Property?
Under Texas law, community property includes most assets and debts acquired by either spouse during the marriage—regardless of whose name is on the title. This can include:
- Wages and income earned during the marriage
- Real estate and vehicles purchased during the marriage
- Retirement accounts and investment portfolios
- Business income
- Debts and liabilities incurred during the marriage
What Is Separate Property?
Separate property is not subject to division and includes:
- Assets owned before the marriage
- Inheritances or gifts received by one spouse alone
- Personal injury settlements (with limited exceptions)
- Property acquired with separate funds
It’s important to have clear documentation and legal evidence to prove that something is truly separate property, especially in a contested divorce.
In Texas, the burden of proof falls on the spouse claiming that an asset is separate property. This means you must present convincing and traceable documentation that clearly shows the asset was acquired before the marriage, gifted solely to you, or inherited individually. Common forms of evidence include bank records, gift letters, wills, account statements, deeds, or affidavits.
In some cases, a process known as tracing may be required to prove that community and separate funds were not commingled. If the documentation is insufficient or unclear, the court may presume the property is community property and subject to division. Having legal guidance to preserve and present this evidence is crucial in protecting your financial interests.
How Is Community Property Divided in Texas?
Texas courts divide community property in a way that is “just and right,” which doesn’t always mean a 50/50 split. Instead, the court looks at what’s fair based on the unique facts of the case. Factors the court may consider include:
- Each spouse’s earning capacity
- Who will have primary custody of the children
- Health issues or disabilities
- Fault in the breakup of the marriage
- Financial misconduct, such as hiding assets or excessive spending
In a Texas divorce, “just and right” means a fair—not necessarily equal—division of assets and debts. At Denis Law Group, we advocate for a division that protects your financial future, whether through negotiation, mediation, or trial when needed.
Common Community Property Concerns in Divorce
- Retirement Accounts & Pensions
These are often the most valuable assets in a divorce. We use Qualified Domestic Relations Orders (QDROs) to divide pensions and 401(k)s without tax penalties. - The Family Home
Should one spouse keep the house? Will it be sold? We’ll help you determine what’s equitable—and realistic—based on your financial situation. - Business Ownership
Business interests require careful valuation and may involve a forensic accountant. Our firm protects both ownership rights and marital equity. - Debt Division
We ensure that marital debts—like credit cards or joint loans—are divided fairly and without surprises.
Why Legal Help Matters
Texas property laws are complex, and mistakes in property division can be costly and difficult to fix later. At Denis Law Group, we help you:
- Identify and value community vs. separate property
- Negotiate a fair division of assets and debts
- Avoid tax traps and future financial issues
- Protect your future after divorce
Protect Your Property and Your Peace of Mind
Don’t leave your financial future to chance. Whether you’re filing for divorce or preparing for mediation, our team is here to advocate for you with skill and compassion.