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Property Division

Understanding Property Division in Texas: What You Need to Know

When a marriage ends, one of the most complex and emotionally charged issues is property division. In Texas, the process is governed by community property laws, which can make things feel even more overwhelming. At our firm, we guide clients through these complexities, ensuring they receive a fair and equitable division of assets and debts.

Community vs. Separate Property

Texas is a community property state, which means most property acquired during the marriage belongs equally to both spouses. However, equally doesn’t always mean a 50/50 split—it means what’s fair, given each person’s financial situation, contributions, and future needs.

Community Property Includes:

- Income earned by either spouse during the marriage

- Homes or real estate purchased together

- Retirement accounts funded during the marriage

- Vehicles and personal items bought while married

- Debts like credit cards or loans accumulated together

Separate Property Includes:

- Property owned before the marriage

- Inheritances or gifts received individually

- Personal injury awards (except for lost wages)

Example: If one spouse owned a small home before the marriage, and they never put the other spouse’s name on the title, that home may remain separate property—even if both lived in it during the marriage.

Equitable Doesn’t Mean Equal

Texas courts aim for a just and right division, not necessarily a 50/50 split. Several factors come into play, such as:

- Disparities in income or earning potential

- Who has primary custody of children

- Fault in the breakup (such as infidelity)

- Health and age of each spouse

Example: One spouse may get a larger share of the marital assets if they’re the primary caregiver for the children and earn significantly less than the other.

Complex Assets Require Strategic Handling

We work closely with clients to protect their interests in more complex property issues like:

Business Interests:

If you started a business during the marriage, it might be considered community property—even if only one spouse managed it.

Example: A graphic design business launched by one spouse may still be subject to division if it grew and generated income during the marriage.

Retirement Accounts:

401(k)s, pensions, and IRAs are often some of the most valuable assets and must be properly divided—even if only one spouse’s name is on the account.

Real Estate:

Whether it’s the marital home or investment properties, we help clients determine fair market value and whether it makes more sense to sell, divide equity, or negotiate buyouts.

Final Thoughts

Property division in Texas isn’t just about numbers—it’s about protecting your future. Whether you’re dealing with complex financial matters or just trying to understand your rights, we’re here to ensure you’re treated fairly every step of the way.