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Texas law and the separation of assets

On Behalf of | Nov 3, 2021 | Divorce

When you are getting divorced in Texas, the court will divide your property, or you and your spouse can do it by yourselves if you can agree. If you and your partner have many assets tied up in different investments and items, you may need to look deeper into your financial standing to divide your property correctly. Here’s a look at how property separation works in Texas.

Divorce in the community property system

In Texas, the court doesn’t divide marital assets 50/50 between divorcing couples; rather, the court will split it in a way that’s just and right. The judge will look at the nature of your assets, your contributions to them and other relevant factors before deciding on the best way to distribute the property between you and your ex.

Every asset or item you acquired during your marriage is subject to division unless it was an inheritance or a gift. All the property you acquired before marriage is separate property, and the court will normally not touch these assets during property division.

The separation of assets

In high-asset property division, the court may use a system known as in-kind division or split. Typically, the court will wholly assign an asset to a spouse. For example, the house can be given to one spouse while the other takes something else.

If this isn’t possible, the court may apply another method known as division by sale of property. For example, if the judge must divide an asset like a piece of art worth $800,000 between you and your spouse, they can decide to give it to one spouse and have him or her pay the other $400,000. If the spouse set to receive the asset can’t pay that amount, the court will order the sale of that piece of art and then divide the proceeds between the two of you.

Property division is sometimes a very contentious matter in a divorce. You’ll want to ensure that you gather all the right information and get the support you need to make the process easier.

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