What is Community Property in Bedford, Texas?
One of the biggest issues, when you divorce, is how to divide your property. Texas is a community property state. Community property is defined under Texas law as all of the property and earnings that either spouse acquires during the marriage, except separate property. It includes the profits and revenues of separate property realized during the marriage.
Community property is sometimes referred to as marital property. Each spouse is considered to own a one-half interest in all community property.
Community property could include assets, such as the family home, vehicles, vacation property, furnishings, clothing, jewelry, bank accounts, dividends, and business interests. Any interest in a pension, retirement account, profit-sharing, or other employee benefit plan accumulated during the marriage is also community property. It does not matter which spouse paid for the property or whose name is on the title, note, account, or contract.
Common examples of community debt divided during a divorce include credit card debt, mortgage payments, rent owed, and car or boat loans.
Note- Every state has its own laws regarding property division. What applies in Texas may not apply in other states.
What is Separate Property in Bedford, Texas?
Texas law defines separate property as:
• Property owned by a spouse before marriage;
• Property gifted to a spouse during the marriage;
• Property inherited by a spouse during the marriage; and
• Recovery for personal injuries sustained by a spouse during marriage, except any recovery for loss of earning capacity during marriage.
Common examples of separate property include a spouse’s home bought before the marriage, a car received through an inheritance, or jewelry given to a spouse by the other spouse.
How Does the Court Divide Property in a Texas Divorce?
In Texas, the court will typically split community property and debts equally between divorcing spouses. However, the court can order an unequal but equitable division if there are “just and right” reasons. The court can consider any relevant factors, including:
• Fault in the breakup of the marriage (cheating, drug abuse, and waste of community assets);
• The disparity of earning power between the spouses;
• Each spouse’s health;
• Which spouse has primary custody of the children;
• Tax issues; and
• Each spouse’s future employability and education.
Typically, the spouse awarded the piece of community property will also be responsible for any debt that it carries (i.e., a mortgage or car payment). However, the court does not have the power to remove the other spouse from the loan or contract. The creditor can still look to both spouses for payment, even after they are divorced.
After the divorce, each spouse keeps ownership of their separate property. If the mortgage or car payments for the separate property were made with community funds after the marriage, the non-owning spouse can ask for reimbursement of the money spent to pay for the separate property. This is referred to as reimbursement.
Texas encourages spouses to reach a settlement agreement about property division out of court. Negotiating a property settlement agreement is usually the best option to keep costs low and the process moving forward in a timely manner. In general, it also leads to less animosity between the parties. If the parties cannot reach a settlement or the court rejects the agreement (a rare occurrence), there will be a hearing to decide property division.
Of course, when divorcing, you will find retaining an experienced divorce lawyer like Craig Michalk is best. He is an attorney with over 26 years of legal experience who exclusively practices family law in Tarrant County. Because Craig is a sole practitioner, you are assured confidentiality and his personal attention in the handling of your case. He can answer your concerns about community property and how division of marital property works.
How Do You Prove Property is Community Property in Bedford, Texas?
The court will assume that any property possessed by either spouse during the marriage and at the time of divorce is community property. A spouse has the burden to prove that an asset is a separate property. They must give the court “clear and convincing” evidence that the item is not community property. Clear and convincing means that the evidence shows that it is highly and substantially more likely to be true than untrue. Examples of evidence include recorded deeds, purchase agreements, and transfer agreements.
How Does a Prenuptial Agreement Affect Community Property in Bedford, Texas?
In a prenuptial or postnuptial agreement, Texas couples can make their own definitions regarding what property is community or separate. Couples can decide to classify property that would otherwise be considered community as separate. If the couple gets divorced, the prenuptial will control the division of property. If you have questions on how to understand your prenuptial or postnuptial agreement, consult with divorce attorney Craig Michalk.
Your Bedford Divorce Attorney
If you have questions about getting a divorce, community property division, child custody, or other family law matters, you should contact an experienced Bedford divorce lawyer. Call the Law Office of Craig S. Michalk today at 817-282-9895 for a free consultation. We look forward to the opportunity to discuss and assist you with your divorce.
