At The Fox Firm, one of our goals in a divorce case is to move through the proceedings as economically as possible. However, there are often points of contention that prevent a speedy outcome. Heated issues involving adultery evidenced by phone records, text messages, and social media DMs, can really slow the pace. But, when it comes to continuous issues in a Texas divorce, the division of assets is often at the top of the list. This is understandable given the fact that the outcome of this issue may determine how easy it is to move on once the divorce is finalized.
The Basics Of Asset Division In Texas
If you are considering filing for divorce in Plano, or anywhere else in Texas, it’s wise to learn more about how this process works.
What Is Considered An Asset?
Legally, anything that has real value is considered an asset. This can include properties, cars, jewelry, retirement accounts, cash, investment accounts, and so much more.
Texas Is A Community Property State
Texas is a community property state which means that typically, all assets obtained during the marriage belong to both spouses equally unless otherwise stated in a pre or postnuptial agreement. This also applies to debts and liabilities that were incurred during the marriage.
Any asset obtained before the marriage is considered separate. Other assets that may be considered separate include gifts, inheritance, and awards from a personal injury case.
The first step that the court will take is the classification of assets, identifying which assets are considered community vs separate. Then, the division of these assets can begin.
Community Property
Homes, land, and cars are some of the most common community properties handled in Texas divorce cases. If an agreement between the spouses on how to divide this property can be made, the judge will typically approve it. If an agreement can’t be reached, then the judge must determine how to split the property in a manner that is “just and right”.
The outcome of community property division can vary greatly from case to case. Factors that can impact a decision include income, children, which spouse is the primary caregiver to the children, where the children live, and the amount of separate property that is owned by either spouse.
Pets
To most people, pets are family members. However, the law identifies pets as property.
While a couple can agree to shared custody of a pet or a visitation schedule, if an agreement can’t be reached, the judge will determine which spouse obtains custody of the pet.
The judge will take into consideration who found or adopted the pet, who provided care daily, and who made the veterinary decisions when determining which spouse will continue caring for the pet.
Retirement Accounts
Retirement accounts that could be subject to division in a divorce include 401(k) accounts, pensions, IRAs, and deferred compensation accounts.
Even though these accounts have only one person’s name on them, the money deposited into the account during the marriage is considered community property. Contributions made before the marriage are considered separate property.
It is possible to “cash out” your share of a retirement account or to exchange shared property in the amount that would have been received from the retirement account. Otherwise, the judge will once again determine how best to split the assets. This does not mean that each spouse will automatically receive the same amount.
Protect Your Assets – Contact An Experienced Texas Divorce Attorney
Working with an attorney greatly increases the chances of a fair division of assets. If you are considering filing for divorce, contact The Fox Firm today to learn more about how we can help guide you through this difficult time.