- January 2, 2023
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* The following article is not legal advice. Please consult with a qualified attorney regarding your specific situation*
When you divorce in Texas, one of the most important and often contentious issues to resolve is the division of property. Texas follows the concept of “community property,” which means all property acquired by either spouse during the marriage is considered jointly owned. This includes the family home.
However, not all property is considered community property. There are exceptions to the general rule, which can complicate dividing property.
What is Community Property in Texas?
Community property is defined as property acquired by either spouse during the course of the marriage, with certain exceptions. Community property is owned equally by both spouses and is subject to division equally between the spouses in the event of divorce or death.
Texas Family Code Section 3.002
In Texas, community property is “presumed,” meaning all property acquired by either spouse during the marriage is presumed to be community property unless it falls into one of the exceptions listed below.
Even if only one spouse’s name is on a piece of property, such as a bank account, car, or property deed, it is still considered community property unless it falls into an exception.
Exceptions to the Community Property Rule
Three main exceptions to the general rule of community property in Texas are:
- Separate property: Property owned by one spouse before the marriage or acquired by one spouse during the marriage through gift or inheritance is separate property and is not subject to division in a divorce.
- Property held in trust: Property held in trust, such as a trust fund or life insurance policy with a designated beneficiary, is also not considered community property and is not subject to division in a divorce.
- Property acquired after separation: Property acquired by either spouse after the date of separation is not considered community property and is not subject to division in a divorce. In Texas, the date of separation is when one spouse communicates in writing to the other that the marriage is over and they no longer wish to live together as husband and wife.
Options for Dividing Your Community Property House
Once you determine which property is considered community property and which is not, the next step is to determine how you will divide the property.
In Texas, the general rule is that the court should divide community property in a way that is “just and right,” considering the circumstances of the parties and the nature of the property.
There are several options for dividing the family home in a divorce:
- Buyout – One spouse can buy out the other’s interest in the home by paying their share of the equity or refinancing the mortgage to remove the other spouse’s name.
- Sell and Split – The spouses can sell the home and divide the proceeds if neither spouse wants to keep it or if the house is worth more than either spouse can afford on their own.
- Keep with Conditions – One spouse can keep the home subject to certain conditions, such as refinancing the mortgage to remove the other spouse’s name or paying their share of the equity.
The court is not required to divide community property equally in a divorce. Instead, it can separate the property in a way it believes is just and right, considering the above factors and other relevant circumstances. In some cases, spouses can agree on a division of property on their own.
Working With a Professional Home Buyer to Divide Property
When it comes to dividing property in a divorce, it can be a complicated and stressful process. If you’re struggling to decide what to do with your house, we can help.
We’ll work with you to find a solution that fits your needs, whether that means selling the house and dividing the proceeds or having one spouse buy out the other’s interest.
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Legal Resources
The Texas Family Code contains the laws governing divorce and property division in Texas. You can find a copy of the Texas Family Code online at the Texas Legislature’s website: https://www.texaslegislature.gov/
The Texas State Law Library also has several resources on divorce and family law in Texas, including the Texas Family Code, court forms, and legal guides. You can visit their website at: https://www.sll.texas.gov/
It is always a good idea to seek the advice of an experienced family law attorney when going through a divorce in Texas. An attorney can help you understand your legal rights and options and can represent you in court if necessary. You can find a list of attorneys in your area by contacting the Texas State Bar Association’s Lawyer Referral Information Service at: https://www.texasbar.com/AM/Template.cfm?Section=Lawyer_Referral_Information_Service