How is Money Split in a Divorce in Texas?

 Posted on August 28, 2023 in Property Division

Divorce is not only emotionally taxing but also financially intricate, especially when it comes to dividing marital assets. In Texas, the process of splitting money and property is guided by community property laws, which will, along with the spouses or judge, dictate the final settlement. Understanding how money is divided during a divorce in Texas is crucial for both spouses to ensure a fair and equitable outcome. It is best to enlist the skills and knowledge of a Frisco high net worth divorce attorney to help ensure your rights are protected.

Community Property Laws in Texas

Texas is one of the few states in the United States that follows the community property system. Under this system, any assets acquired during the marriage are generally considered community property, belonging equally to both spouses. This includes income, real estate, investments, and other property obtained during the marriage. Community property laws work the same in a high net worth divorce.

Separate Property

However, not all assets fall under the umbrella of community property. Separate property is assets owned by one spouse individually before the marriage or acquired by gift, inheritance, or personal injury settlement during the marriage. These assets are generally not legally subject to division during divorce.

Equitable Division vs. Equal Division

It is essential to note that while Texas follows community property laws, the division of marital assets does not always result in an equal 50-50 split. Texas law requires a "just and right" division, which considers various factors to determine what is fair. This means the division may be unequal if certain circumstances warrant a different allocation.

When determining the division of marital assets, the court considers several factors, including:

• Age and health of each spouse: The court may consider the future financial needs of each spouse, especially if one spouse requires ongoing medical care or support.

• Education and earning capacity: If one spouse has significantly lower earning potential or educational opportunities, the court may consider this when dividing assets.

• Child custody arrangements: The custody arrangement for any children may influence the division of assets, as the custodial parent may require additional financial support.

• Fault in the marriage: In cases where one spouse is at fault for the divorce, the court might consider this when determining the division of assets.

• Contributions to the marriage: The court considers both financial and non-financial contributions to the marriage. This includes contributions to the household, raising children, and supporting a spouse's career or education.

Getting Divorced? Seek Legal Assistance to Protect Your Rights from a Collin County, TX High Net Worth Divorce Lawyer

Navigating the complexities of asset division in a Texas divorce can be challenging, especially when emotions are running high. Seeking the guidance of an experienced family law attorney is essential to ensure that your rights are protected and that you receive a fair share of marital assets. A knowledgeable attorney can help you understand the intricacies of community property laws, assess the value of assets, negotiate a settlement, and advocate for your best interests in court if necessary.

Contact The Law Office of Linda Risinger online or by phone at 972-294-6533 to schedule a no-obligation divorce consultation with a Frisco high net worth divorce attorney.