Divorce brings major changes, especially in finances, and one of the biggest questions is: What happens to shared accounts? Whether it’s a joint bank account, retirement savings, or investments, these assets require a clear and fair approach to division.
For Texans going through a divorce, the Texas Family Code provides guidelines on how shared accounts and other marital property are handled. Here’s a comprehensive look at the topic, with practical examples and insights into Texas law.
For personalized advice, please contact Attorney Tyler Monahan, partner at Turner-Monahan, PLLC, to discuss your case.
Understanding Community vs. Separate Property in Texas
Texas is a community property state, meaning that most assets acquired during the marriage belong to both spouses equally. According to Section 3.002 of the Texas Family Code, community property includes earnings, savings, retirement contributions, and debts accumulated during the marriage. Separate property, as defined by Section 3.001, includes assets acquired before marriage, gifts, and inheritances, which belong solely to one spouse. When it comes to shared accounts, this distinction becomes crucial in determining who owns what.
For example, if a couple opens a joint savings account after marriage and both contribute to it, this account is considered community property. However, if one spouse had a savings account before marriage and kept it separate, this could remain their separate property, unless it was “commingled” with marital funds.
Types of Shared Accounts and How They’re Divided
Different types of shared accounts can be affected by divorce. Here’s a breakdown of some common examples and what typically happens to each:
1. Joint Bank Accounts
Bank accounts shared between spouses are among the easiest to divide. Both spouses usually have equal access to the funds, so the court may split the balance evenly or according to a negotiated agreement. However, if one spouse has contributed significantly more than the other, this can impact the split. In contested divorces, disagreements over these accounts can be handled by an affordable family lawyer who ensures a fair outcome.
2. Retirement Accounts
Retirement accounts are complex since they’re usually tied to one spouse’s employment but are still considered community property if contributed during marriage. Under the Texas Family Code, a Qualified Domestic Relations Order (QDRO) is required to divide retirement accounts, such as 401(k)s or pensions. A divorce asset split attorney is vital here, ensuring each party receives their fair share.
3. Investment Accounts
Investment accounts, like brokerage accounts, often contain community funds if they’ve been built up during the marriage. A prenuptial agreement lawyer or postnuptial agreement services can prevent disputes over these assets if the couple establishes an agreement beforehand. Without an agreement, these accounts are divided based on community property principles.
The Texas Family Code’s Role in Dividing Shared Accounts
The Texas Family Code provides detailed statutes that guide the division of marital assets during divorce proceedings. Below are some key statutes and how they apply:
Section 7.001 of the Texas Family Code gives the court authority to divide property in a “just and right” manner. This means the court has the discretion to consider factors like each spouse’s income, education, and contributions to the marriage.
Section 7.002 allows the court to order a fair division of retirement and other shared accounts, considering factors such as the length of the marriage, the age of each spouse, and any prenuptial or postnuptial agreements in place.
For example, if a couple has been married for over 20 years and has built substantial joint assets, the court may opt for an equal split. However, if one spouse has health issues or limited income potential, they may receive a larger share to maintain financial stability.
Real-Life Scenarios of Shared Account Division
To understand how these statutes play out, let’s look at some real-life scenarios that Texas couples might face:
Scenario 1: The Working Spouse and the Homemaker
Imagine a couple where one spouse has been the primary earner, while the other has managed the household and children. In a divorce, the court might divide shared accounts in favor of the homemaker to balance the lack of independent income, following Section 7.001 principles. This division would ensure the homemaker receives adequate financial support post-divorce.
Scenario 2: Contributions to Separate Property
Suppose one spouse had a savings account before marriage and continued adding personal funds to it. If the other spouse contributed, too, this account might become community property. In cases like these, a divorce attorney can assist in proving separate contributions and negotiating a fair split.
Protecting Your Interests in Shared Accounts During Divorce
Divorce can be financially challenging, so it’s essential to protect your interests. Working with a divorce attorney in Fort Worth or a spousal maintenance attorney can help ensure that your rights are safeguarded, especially in complex asset divisions. Here are some steps you can take:
- Document Your Finances: Maintain records of each account, detailing contributions and withdrawals. These records will be useful if you need to prove what portion of a shared account is your separate property.
- Consider Legal Separation: For couples who are not ready to divorce, a legal separation lawyer can help draft an agreement to manage shared finances while living apart.
- Work with an Attorney: Having professional guidance ensures you understand your rights and receive a fair outcome.
Turner Monahan PLLC – Here to Support You
With over 50 years of experience, Turner Monahan PLLC understands the complexities of dividing shared accounts during divorce. As one of the best divorce attorneys in Fort Worth and Tarrant County, Turner Monahan is known for dependable and aggressive representation. 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 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.
