Dividing assets and debts in a divorce can feel overwhelming, especially when emotions and years of shared responsibilities are involved. Each situation is unique, and what seems simple at first often requires time, clarity, and detailed review.
In the video, Atty. Tyler Monahan of Turner-Monahan PLLC shares why dividing assets and debts in a divorce takes time and careful planning, and why your divorce decree is one of the most important documents you’ll ever sign. All case evaluations are based on Texas Family Law. This content is for educational purposes only.
Understanding How Assets and Debts Are Divided in a Divorce
When it comes to handling assets in a divorce, many people want to know right away what will happen to their property, money, and debts. It’s one of the most common questions we receive at Turner-Monahan: What’s going to happen to my assets? How are things going to be divided?
The truth is, before any of those answers become clear, it’s important to take a step back and gather all the facts first. Whether you’ve been married for three years or thirty, you can’t expect to unwind something built over years in just a few weeks. Dividing assets and debts is not a quick or simple process, it takes time, patience, and a full understanding of your financial situation.
Tracing Separate Property and Commingling
Some things belong only to one spouse, like property owned before marriage, gifts, or inheritance. If those funds were mixed with joint money, it may take careful tracing to show what is still separate. Bank records, wire proofs, closing statements, and statements from before and during the marriage help show the source and path of funds so the right label can be kept.
Valuing Hard To Value Assets
Not every asset has a simple price tag. Business interests, stock options, crypto, restricted stock units, mineral rights, and collectibles often need a neutral appraiser or expert. The valuation date can matter because values move. Clear reports, tax adjustments, and a written plan for buyout or division keep both sides on the same page and reduce future conflict.
Handling Debt And Protecting Credit
Debts can be joint or in one person’s name. During the case, consider closing extra cards, freezing new charges, and setting clear rules on who pays what. Get a full list of accounts, loan numbers, balances, and due dates. Ask for indemnity language and a plan to refinance or sell secured items like a car or a home so one person is not left with damage to credit.
The Importance of the Divorce Decree
Your divorce decree is one of the most important documents you will ever sign in your life. It’s not just a legal paper, it’s a record of how everything that matters to you will be handled moving forward.
This single document decides what happens to your children, your pets, your assets, your car, your home, and everything you’ve worked hard to acquire. It’s the foundation for what life looks like after divorce. That’s why it’s so important to know exactly what direction you’re heading in before you look at the final outcome.
Taking the Right Approach
At Turner-Monahan, we always tell our clients that understanding the process comes before rushing to the end. The focus should be on gathering accurate information, evaluating your full financial picture, and carefully deciding how to divide what you own and owe. Only then can you make confident and fair decisions about your future.
What the Texas Family Code Says About Inheritance
Section 3.001 Separate Property
This section explains that property owned before marriage, and gifts or inheritance received during marriage, are separate. If you claim an item is separate, keep records that prove when and how it was acquired and be ready to trace it if it was mixed with joint funds.
Section 3.002 and Section 3.003 Community Property and Presumption
These sections say most property gained during marriage is community, and the law presumes it is community. To overcome this presumption, clear and convincing evidence is needed. Good records, appraisals, and timelines help meet this standard.
Section 7.001 Just And Right Division
This section gives the court power to make a division that is just and right. The court may look at many facts, such as each spouse’s earning power, health, fault, and who will have primary care of children. A fair plan is based on the full picture, not only a fifty fifty split.
Section 7.009 Fraud On The Community And Remedies
If one spouse hid assets, wasted money, or moved property in a harmful way, the court can make up for that harm. The court can award a larger share, give a money judgment, or use other remedies. Careful review of statements and unusual transfers helps find and fix these issues.
Section 3.402 Reimbursement Claims
If one estate helped another, like using separate funds to pay down a community mortgage, a reimbursement claim may be available. These claims need proof of the amounts paid and the benefits received. Clear math, dates, and documents make these claims stronger.
Consult with a family law attorney to review your situation and ensure your inheritance remains secure under Texas law.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
A clear plan and good records make asset and debt division easier to manage. Thoughtful valuations and strong language in the final order lower future risk. For advice tailored to your facts, consult with a family law attorney who can review your documents and goals.
Schedule a free, no-obligation consultation with Attorney Tyler Monahan to discuss the details.
Check our website for more information about our services. Plus, don’t forget to go through our blog to find out more about your case. There is tons of information on divorce and answers to unique questions like “How Can Parents Establish a New Normal That Prioritizes Their Children?”
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
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 for 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.
