Divorce is hard, and one of the most stressful parts is figuring out who gets what. In Texas, property division follows specific rules under the Texas Family Code. Whether you are dealing with a family home, retirement accounts, or a small business, understanding how the law works can help you make informed decisions and avoid surprises during your divorce.
In this article, we’ll walk through what community property means, how courts handle division, common mistakes people make, and why hiring the right divorce attorney is crucial.
For personalized advice, please contact Attorney Tyler Monahan, partner at Turner-Monahan, PLLC, to discuss your case.
Understanding Community Property in Texas
Texas is a community property state. This means most property and money earned by either spouse during the marriage belongs equally to both of you.
According to Texas Family Code §3.003:
“All property, other than separate property, acquired by either spouse during marriage is community property.”
Separate property is not divided in divorce and includes:
- Property owned before the marriage
- Gifts or inheritances given to one spouse
- Certain personal injury settlements
Example:
If you bought a car before marriage, it’s yours alone. If you bought it after marriage using shared funds, it’s community property.
How Property Is Divided During Divorce
When you file for divorce in Texas, the court must divide community property in a way that is “just and right” as required by Texas Family Code §7.001.
This does not always mean a 50/50 split. The judge can consider many factors, such as:
- Each spouse’s earning capacity
- Who will have primary custody of children
- The health of each spouse
- Whether one spouse wasted marital assets
- Fault in the breakup of the marriage (such as adultery or cruelty)
Example:
If one spouse stayed home to raise children while the other built a career, the court may award more property to the stay-at-home spouse to balance future earning potential.
Common Property Division Scenarios
1. Dividing the Family Home
For many couples, the family home is the biggest asset. Options include:
- Selling the home and splitting the proceeds
- One spouse keeping the home and buying out the other’s share
- Delaying the sale until children reach a certain age
If children will live primarily with one parent, judges often prefer stability and may let that parent stay in the home, even if it means giving the other spouse a larger share of other assets.
2. Retirement Accounts and Pensions
Retirement accounts are often divided using a Qualified Domestic Relations Order (QDRO).
For instance, a 401(k) built during the marriage is community property and must be split fairly. The QDRO allows the funds to be divided without tax penalties.
3. High-Asset Divorce
If the marriage includes multiple properties, investments, or a family-owned business, division becomes more complex. A high net worth divorce requires detailed valuations and sometimes forensic accountants to track hidden assets.
Example:
A couple owns two rental properties, a business, and several retirement accounts.
- One spouse keeps the business
- The other spouse takes the rentals
- Retirement accounts are split equally
This ensures a balanced division while respecting the unique nature of each asset.
4. Debts and Liabilities
Just like assets, debts acquired during the marriage are also divided. This includes mortgages, credit cards, and loans.
If one spouse ran up debt secretly, the court may assign that debt solely to them under Texas Family Code §7.001.
The Role of the Texas Family Code
The Texas Family Code is the backbone of property division laws.
Key sections include:
- §3.003 – Defines community property vs. separate property
- §7.001 – Sets the standard of “just and right” division
- §7.002 – Lists factors courts consider in unequal splits
- §7.003 – Covers division of retirement benefits
These statutes ensure judges make decisions fairly and consistently, but each case is unique.
Why You Need a Skilled Attorney
Property division can quickly become overwhelming. A skilled family law attorney can help you:
- Identify what counts as community or separate property
- Negotiate a fair settlement
- Prepare the required legal documents
- Protect your interests in court
If you are in Tarrant County or nearby areas, finding the best divorce attorney in Fort Worth or a DFW divorce attorney can make a major difference in the outcome of your case.
Steps to Take Before Filing
1. Gather Records
Collect bank statements, property deeds, tax returns, and retirement account records.
2. Make a List of Assets and Debts
This helps your attorney see the full picture.
3. Consult a Lawyer Early
Even if you haven’t decided to file, speaking with a divorce lawyer for an initial consultation can clarify your rights and options.
Turner-Monahan PLLC: Experienced Family Law Representation You Can Trust
With over 50 years of experience, Turner-Monahan PLLC has helped thousands of families navigate divorce and property division. Schedule a free, no-obligation consultation with Attorney Tyler Monahan to discuss the details.
Disclaimer
The commentary and opinions are for informational and educational purposes only and are not intended to provide legal advice. You should contact an attorney in your state to obtain legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PLLC, by signing a written retainer agreement.
