When going through a divorce, the exact process that you will follow will depend largely on the state that you are residing in. Many people do not realize that each state has its own set of laws that governs the way property is divided between each spouse.
If you are a resident of Texas when you start your divorce process, it is important that you take the time to understand how the law works in regard to the division of assets. In this way, you can be adequately prepared to make the wisest choices when it comes to your divorce.
What are the laws in Texas when it comes to the division of assets?
It is likely that your finances and your assets will have become intertwined over the years of marriage with your spouse. Therefore, when you are going through a divorce, it might be a challenge to agree on how you can go about separating your assets. This is where Texas law comes in.
Texas is a community property state, which means that all assets gained by either spouse during the marriage is considered to be marital property in the event of a divorce. Therefore, all property that is acquired before the marriage is not subject to division in the state of Texas.
Are there any exceptions for assets that are acquired during the marriage?
Not all assets acquired during marriage are eligible for a perfect split in the state of Texas. The Texas Constitution states that any property which is acquired by “gift, devise, or descent” will always be considered as separate property when assets are divided during divorce. Examples of assets such as this are family heirlooms, birthday gifts, inheritance funds and legal rewards such as claims from a personal injury case.
When learning more about the divorce process in Texas, it is important that you consider how a divorce will affect your retirement plan as well as other insurance plans. It is a good idea to think strategically about the financial impact divorce will have on you, and make sure to plan for the future before filing for a divorce in Texas.