Understanding Community Property in Texas: What You Need to Know During Divorce

If you’re going through a divorce in Texas, it’s important to understand how property is divided—and how the law classifies what belongs to you versus what belongs to the marital estate. Texas is a community property state, and that distinction matters greatly when it comes to dividing assets and debts.

At Denis Law Group, we work with clients across Texas to ensure that their financial interests are protected, especially when there are significant assets, retirement accounts, or separate property involved.

What Is Community Property in Texas?

Under Texas Family Code § 3.002, community property is defined as:

“Property, other than separate property, acquired by either spouse during marriage.”

In plain terms, this means that any property, income, or asset obtained by either spouse during the marriage is presumed to be jointly owned, regardless of who earned it or whose name is on the title.

Examples of Community Property

According to Texas case law, community property includes:

  • Income earned by either spouse during the marriage
  • Real estate purchased during the marriage
  • Vehicles, furnishings, and valuables acquired after the wedding
  • Retirement contributions and interest earned during the marriage (McClary v. Thompson)
  • Investment accounts funded during the marriage
  • Bonuses, commissions, and business earnings during the marriage

In Lee v. Lee, the court confirmed that community property includes “all effects or gains or property of every kind to either spouse during the marriage in any manner other than by gift, devise, or descent.”

What Is Separate Property?

Separate property refers to property owned by a spouse before marriage or acquired by gift, inheritance, or certain personal injury settlements.

However, just saying an asset is separate property isn’t enough. According to Texas Family Code § 3.003, property possessed during the marriage is presumed to be community property unless proven otherwise with “clear and convincing evidence.”

That burden of proof is yours—and it’s a high standard.

How Do You Prove Separate Property in a Texas Divorce?

To successfully claim property as separate, you must trace the origin of the asset and provide evidence that clearly shows it was:

  • Acquired before marriage
  • Received as a gift or inheritance
  • Derived from separate property income that was not commingled

Key Case Law on Tracing Separate Property:

  • Tarver v. Tarver: “A spouse must trace and clearly identify property claimed as separate property.”
  • Latham v. Allison: “Conjecture is not enough. You must provide solid evidence—not just possibilities—to trace separate property.”

If you can’t provide documents or statements that trace the origin of an asset, the Court will likely classify it as community property, even if you believe it was yours alone.

Why This Matters in Your Divorce

The inception of the title rule (Camp v. Camp) holds that the character of property is determined when the right to claim it begins. That means if you bought something before marriage, it may still be separate, but only if you can prove it.

If you don’t provide bank records, closing documents, or other evidence, your separate property may be subject to division as community property, something we want to avoid.

As your legal team, we can only advocate for you effectively if you provide complete documentation that helps us identify and prove what should legally be considered your separate property.

What You Need to Do Next

If you believe you have separate property, start gathering documentation right away:

  • Pre-marital bank or investment statements
  • Gift or inheritance letters and records
  • Deeds or closing documents from pre-marriage purchases
  • Retirement statements showing account inception dates
  • Any trust or inheritance paperwork

Final Thoughts: We’re Here to Help You Get What’s Yours

Texas divorce law is clear: everything is presumed community property unless you prove otherwise. You hired us to advocate for you, but we can’t do that without your help.

Let’s work together to ensure your separate property is protected and your divorce settlement reflects what’s fair and lawful.

Have questions? Need help with tracing assets?

Contact Denis Law Group today—we’re here to support you at every step of your divorce process.