In general, the manner in which marital assets are divided during a divorce depends on the laws of the state in which the couple resides. The majority of states subscribe to the equitable distribution approach, in which assets are divided in a fair, but not always equal manner. Texas, however, is one of the few states that adheres to community property laws, in which all marital property is divided equally among spouses during the division of marital assets.
Texas views all assets that are acquired during a marriage as being jointly owned by both parties. However, if it can be shown that an asset is the sole property of one spouse, that asset may retain its separate identity. For instance, assets that were acquired before a marriage or obtained through a gift or inheritance may be considered separate property.
There are other conditions to consider when determining whether assets will be viewed as community property. If one spouse acquired an asset while living in another state, and Texas laws would have considered it to be community property, the court may opt to divide the asset in a manner that is deemed fair. In addition, if there exists a written agreement between the spouses, then the state may honor the contract.
Texas residents who are preparing a for divorce may have many questions regarding the division of marital assets. Understanding state divorce laws can be an intimidating task, and in some situations, a person may worry that the outcome of a divorce will jeopardize his or her finances. For those who wish to protect their financial well-being, consulting with an experienced attorney may prove beneficial.