Who gets to keep what is often the first thing people think of when going through a divorce. Asset division is a crucial part of the divorce process. Many people have certain assets they want to keep in the divorce settlement, such as the car, house or personal treasures.
People who are going through a divorce can learn more about the divorce process in Texas, such as how marital assets are divided. Here is what you should know:
Understanding community property and equitable distribution laws
Texas is a community property state. This means that assets and debts acquired during a marriage are considered community property and equally owned between spouses. In some divorce cases, this means assets are divided 50/50 in the divorce settlement.
There are some divorce cases where assets are divided by what is “just and right” under equitable distribution laws. The just and right division of assets means community property may be divided based on what is fair.
Some factors that could influence the division of community property include:
- The length of a marriage
- Each spouse’s earning capacity
- Tax implications and economic circumstances
Some assets are not considered community property, including gifts and inheritance and assets owned before a marriage. These assets, typically, are not divided in a divorce. However, separate property that is commingled with community property may be hard to separate.
Couples can work out the division of assets and debts and present their plan to a court. If couples cannot reach an amicable agreement, a court may decide how assets are divided. Legal arrangements can help facilitate the division of marital assets. Couples can reach out for professional legal guidance to learn about their options.