Navigating the division of assets and liabilities during divorce is complex. It’s incredibly intricate when businesses, assets, or debts have been obtained before the divorce is finalized.
In the video, Atty. Tyler Monahan of Turner-Monahan, PLLC, discusses the circumstances under which these assets and liabilities could become community property and subject to division between both parties. All case evaluations at Turner Monahan PLLC and the attorneys’ suggestions are in the light of Texas Family Law. This content is for educational purposes only.
The Implications of Acquiring Assets or Debts Prior to Divorce Finalization
Starting a business or obtaining any assets or debts before a divorce is finalized may subject you to those becoming community property. This means that the business, asset, or debt could be divided between you and your spouse.
However, this does not imply that you can deliberately acquire a debt with the expectation of pushing half of it onto your spouse. The court might not necessarily mandate that outcome. Generally, anything acquired during the marriage, whether individually in your name, initiated by you, or procured by you or your spouse, is likely to be regarded as community property by the court.
Not a resident of Texas? Check out the list of community property states here.
Community Property Laws in Texas
Texas is one of the community property states where, generally speaking, any assets or debts acquired during the marriage are regarded as owned jointly by both spouses, irrespective of whose name they are in. This applies to businesses started, assets acquired, and debts incurred during the marriage.
The Texas Family Code, in Section 3.002, defines community property as the property possessed by either spouse during or on the dissolution of marriage that is presumed to be community property.
However, not all property acquired during the marriage is community property. As per Section 3.001 of the Texas Family Code, there are certain exceptions to this rule:
A spouse’s separate property consists of:
(1) the property owned or claimed by the spouse before marriage;
(2) the property acquired by the spouse during marriage by gift, devise, or descent; and
(3) the recovery for personal injuries sustained by the spouse during marriage, except any recovery for loss of earning capacity during marriage.
Moreover, the process of division of community property in case of divorce is outlined in Section 7.001:
In a decree of divorce or annulment, the court shall order a division of the estate of the parties in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.
This clause indicates that the court will take into account a range of factors, including the financial situation of each party, contributions made to the business by each spouse, the welfare of the children involved, and more. For instance, one spouse might have contributed more time, effort, or money to the business, which might warrant a greater share.
Similarly, if one spouse has a greater earning capacity or if there are children’s needs to consider, the court might adjust the division accordingly. As such, the division of a business in a divorce can be a complex and nuanced process, one that is likely to be greatly influenced by the specific circumstances of each case.
All of these laws indicate that property division during divorce can be a complex process, one that requires an understanding of the community property laws and their exceptions, as well as a careful examination of the nature and origins of each piece of property.
While the law provides a general framework, the interpretation and application of these statutes can vary significantly depending on the specifics of each case. Therefore, consulting with a knowledgeable family law firm like Turner Monahan PLLC can be critical for anyone going through a divorce in Texas.
The complexities of asset and liability division in divorce naturally prompt the question: What’s the difference between prenuptial and postnuptial agreements? These agreements, which outline the division of assets and debts, significantly influence their classification as community property under Texas law. Thus, understanding these agreements is vital for managing property division in a divorce scenario. Read more here.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
Having an experienced and knowledgeable attorney by your side is invaluable in the intricate process of property division during divorce. Tyler Monahan, a prominent Fort Worth, Texas figure, is your go-to lawyer for cases involving community property and asset division.
With an extensive background in family law and a profound understanding of the Texas Family Code, Tyler Monahan is well-equipped to handle the complexities associated with the division of businesses, assets, and debts during a divorce.
In addition, he ensures his clients are well informed about their rights and the potential outcomes of their cases. 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 regarding your case. There is tons of information on divorce and answers to unique questions like “What Can I Do To Protect My Credit And Finances? My Ex Won’t Pay The Joint Card Payments.”
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.
- How Often Is Child Support Reviewed In Texas
- Should I Tell My Lawyer The Truth About Everything?
- Can Instagram Messages Be Subpoenaed For Divorce?
- Does Child Support Increase If My Income Or My Spouse’s Income Has Increased?
Disclaimer
The commentary and opinions are for informational and educational purposes only and not 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, PPLC, by signing a written retainer agreement.
