How Asset Division Really Works
Divorce can be an emotionally and financially difficult time. One of the biggest concerns for many going through a divorce is wondering if they will lose everything they've worked so hard for in the division of marital assets.
If you are experiencing a divorce or need support with family law issues, don’t hesitate to contact our family law attorneys at Bastine Law Group at 281-784-3222.
How Assets are Divided in Texas
Texas is a community property state, which means that most assets and debts acquired during the marriage are considered community property that is owned equally by both spouses. This includes:
Income earned during the marriage
Houses, cars, investments, and other property purchased with community funds
Retirement benefits accrued during marriage
Credit card debt and other debts incurred during marriage
So in a Texas divorce, the starting point is that community property will be divided equally between the spouses. However, there are some exceptions.
Separate Property
Separate property, which is property owned before marriage or received as a gift or inheritance during marriage, is not considered community property. Separate property remains the sole property of the spouse who owns it and is not divided in divorce.
Factors that Influence Division
While Texas law starts with a 50/50 split, there are factors that can lead to an unequal division, such as:
Custody arrangements for minor children
Disparity in income and earning capacities
Fault in the breakup of the marriage
Wasting of community assets by a spouse
So while community property is divided equally in most cases, the division can be adjusted based on these kinds of circumstances.
Protecting Assets in Divorce
If you want to protect assets in your divorce, here are some key steps to take:
Trace Separate Property
Thoroughly document any separate property you brought into the marriage or received during the marriage through inheritance, gift, or personal injury settlement. Being able to clearly trace and prove separate property is essential.
Avoid Commingling Separate and Community Property
Keep separate property accounts, assets, and records completely separate from community property. Commingling can make tracing difficult.
Discuss Asset Division Early On
Have frank discussions with your spouse early in the process about an equitable division based on Texas law and your unique situation.
Consult an Experienced Divorce Lawyer
Work with a divorce lawyer in Texas experienced in asset division to understand and protect your rights through the process. Negotiate or litigate strategically.
Common Questions about Asset Division
Can a Spouse Hide Assets in Divorce?
Hiding assets is highly unethical. All community property must be disclosed and divided. If a spouse is caught hiding assets, they may lose their share of the asset and face further penalties.
What if a Spouse Earns More Money?
Income disparity does not necessarily mean an unequal asset division. But factors like lower future earning capacity can be argued for a larger property settlement for the lower earning spouse.
Who Gets the House in Divorce?
The house can be awarded to one spouse in exchange for other assets of equal value awarded to the other spouse. Or, the house can be sold and proceeds split. The mortgage and equity are key considerations.
Do Retirement Accounts Get Split?
Generally, retirement benefits like 401(k)s and pensions earned during marriage are community property and split through a Qualified Domestic Relations Order. The division balances present and future assets.
What About Credit Card and Other Debt?
Marital debt incurred jointly or individually during marriage is typically divided equally. Debt acquired before marriage remains the responsibility of the spouse who acquired it.
Will I Lose Everything in My Divorce? How Asset Division Really Works
Divorce can be an emotionally and financially difficult time. One of the biggest concerns for many going through a divorce is wondering if they will lose everything they've worked so hard for in the division of marital assets.
Don't Lose Hope
Divorce and asset division can certainly be challenging. But working with an experienced divorce attorney, being prepared with good records, and negotiating reasonably based on Texas law can help you achieve a fair outcome without losing everything. With good legal guidance, you can gain confidence, protect your rights, and build a new financial future.
Asset division in a divorce difficult but you do not have to navigate it alone. If you need support and want to connect about divorce, please contact our team of experienced attorneys at Bastine Law Group at 281-784-3222.