One of the most complex aspects of getting divorced is figuring out what’s going to happen to your assets. For as long as you were married, you probably operated as a couple, sharing income, assets, and expenses. However, before a judge can finalize your divorce, it will need to ensure that there are arrangements in place to divide all marital property. In some cases, spouses can reach an agreement, which can significantly expedite the divorce process. However, if you and your spouse cannot agree on “who gets what,” then the judge will end up making the decision for you.
At the Law Office of Jason Wright, our Taylor property division lawyers have decades of combined experience working with clients of all backgrounds. We recognize that the emotional aspects of getting a divorce can be stressful enough, and adding legal and financial matters into the mix only further complicates things. However, we’re confident that, with our help, we can work together to reach a solution that you are happy with.
When a couple gets divorced in Texas, one of the most important parts of the process is the division of property. Texas is a “community property” state, which means that most assets acquired by either spouse during the marriage are considered community property and are subject to division upon divorce. However, the division is not always an even “50-50” split. Instead, Texas courts aim to divide marital property in a manner that is “just and right.” This is referred to as equitable distribution.
In every Taylor divorce, the court must ensure that there are arrangements in place to divide the couple’s marital property. If the departing spouses come to an agreement, the court will usually honor it. However, absent an agreement, the court must distribute marital assets under the state’s equitable distribution law, which requires judges to base their decision on what is “just and right.” Below is a list of considerations that judges will take into account when dividing property in a Taylor divorce.
Before dividing assets, a Taylor divorce judge must first determine which property is separate and which is community. Separate property includes assets acquired before marriage, gifts or inheritances received during the marriage, and recovery for personal injuries sustained during the marriage (except for recovery for loss of earning capacity). These typically remain with the original owner. All other assets acquired during the marriage are usually considered community property.
If one party is at fault for the marriage’s dissolution due to adultery, cruelty, or other reasons, the court may consider this when dividing property. The innocent spouse might receive a larger portion of the marital assets. However, the court is not required to consider fault when dividing marital assets.
The court may award a larger portion of assets to a spouse with a lower earning capacity or poor health, considering their future financial needs.
The parent who is awarded primary custody of the children may receive assets that cater to the children’s needs, such as the family home.
A longer marriage often means the assets are more intertwined, and contributions to the marital estate are harder to differentiate. This can not only make dividing up a couple’s assets more challenging but tends to result in a more equal distribution of marital assets.
If one spouse did not work outside the home, the court will consider the value of their domestic contributions, including homemaking, child-rearing, and supporting the career or education of the other spouse.
If one spouse recklessly spent, hid, or wasted marital assets, especially upon realizing that a divorce was imminent, the court might compensate the other spouse accordingly during property division.
In sum, while Texas adheres to the community property system, the actual division in divorce proceedings is nuanced. Courts look at a range of factors to ensure that the division is equitable and fair, considering the unique circumstances of each marriage.
In the context of a Texas divorce, commingling of assets refers to the blending or mixing of separate property with community property. Texas is a community property state, meaning that any assets acquired during the marriage are generally considered community property and are subject to division upon divorce. However, assets acquired before marriage or by gift or inheritance are typically treated as separate property and are not subject to division.
Commingling occurs when separate property is combined with community property or vice versa, making it challenging to distinguish the origin of the assets. For example, if one spouse inherits a substantial amount of money before the marriage and later deposits it into a joint bank account used for marital expenses, the inheritance may lose its status as being separate and become marital property, which is, of course, subject to division.
The commingling of assets can lead to complex legal issues during divorce proceedings. To protect separate property, you should maintain meticulous records, keeping assets separate and distinct throughout the marriage. In cases where commingling has occurred, the court may require testimony from an expert witness or rely on other evidence to determine the origin and classification of the assets.
In Texas, the process of divorce often involves the division of not just assets but also a couple’s debts. And because Texas is a community property state, it means that most debts acquired during the marriage are considered jointly owned by both spouses, regardless of which spouse actually incurred the debt.
When dividing debts in a Taylor divorce, courts generally begin with the presumption that debts incurred during the marriage are community debts, shared equally by both parties. However, it’s important to note that this is a starting point, and various factors can lead the court to assign debt differently. For example, if one spouse can show that a particular debt was taken on for the sole benefit of the other spouse and without their consent or knowledge, the court might assign that debt to the spouse who incurred the debt.
As with the division of assets, Williamson County judges will also consider the financial situation of each spouse. Thus, if one spouse is significantly more financially equipped to handle a particular debt, the court might assign more of that debt to the better-equipped spouse, especially if it would cause undue hardship for the other spouse.
If you are going through a divorce and have disagreements over property distribution, you have several options to resolve these issues. Each method has its advantages and may be more suitable depending on the complexity of the assets involved, the level of cooperation between you and your spouse, and your desire to maintain control over the decision-making process.
Spouses can engage in direct negotiations, either with or without the assistance of their respective attorneys. This approach allows them to discuss their priorities and concerns openly and work towards a mutually acceptable property settlement. Negotiation can save time and money compared to litigation and gives the spouses greater control over the final outcome. However, it is important to be realistic when approaching your spouse without the help of a lawyer. Often, the emotions that come up as a result of the deteriorating relationship can make it challenging to effectively work together to come up with a solution.
Mediation involves hiring a neutral third-party mediator to facilitate discussions between you and your spouse. The mediator helps identify areas of agreement as well as find compromises in areas of disagreement. Mediation promotes effective communication and can lead to creative solutions that cater to the specific needs and interests of both parties. Divorce mediation may be between the spouses or the spouses and their respective divorce attorneys.
If you and your spouse cannot reach an agreement on your own, arbitration may be the next option. In this process, you present your cases to a neutral arbitrator, who acts similarly to a judge, making decisions on property distribution. Arbitration is more flexible than going to court, as the spouses can choose the arbitrator and the rules of the process. Usually, spouses work with an attorney who handles the arbitration proceeding.
If all other methods fail, the court system is available to resolve property distribution disputes. This option involves presenting evidence and arguments to a judge, who will then make the final decisions on property division. Litigation is generally more time-consuming, costly, and adversarial, but it may be necessary if the parties are unable to find common ground.
It’s essential for divorcing spouses to carefully consider the options available and choose the method that best suits their circumstances. Seeking advice from the experienced family law attorneys at the Law Office of Jason Wright can provide valuable guidance throughout the property distribution process, ensuring that your rights and interests are protected while working toward a fair resolution.
If you believe that divorce is in your future, it is important that you reach out to an experienced Taylor property division lawyer. While you don’t necessarily need to be the first person to file for divorce, you want to make sure you are prepared for what lies ahead. At the Law Office of Jason Wright, we take a comprehensive and strategic approach to every case we handle, starting with a lengthy discussion about what is most important to you. We will refer back to your priorities throughout your case, ensuring that everything we do is in pursuit of your desired outcome. To learn more, and to schedule a no-obligation consultation with one of our Taylor divorce lawyers today, call 512-884-1221. You can also connect with us through our secure online contact form.
