There is a lot of confusion about different types of property in states where community property is a component of divorce law. In Dallas and throughout Texas, there are a number of divorce appeals due to a misunderstanding of community and separate property issues, particularly in pro se divorces.
Pro se divorces are those where one or both parties are not represented by an attorney. Without legal advice, an individual may assume that some types of property, including inheritances, are or are not to be included in the settlement. Hiring a qualified divorce attorney in Dallas is a critical factor in avoiding the cost and stress of divorce appeals over these types of issues.
What is Community Property and Separate Property in Texas?
Community property is property/assets that are owned by both parties in a divorce. This is determined by when the property was acquired. In other words, if the property was acquired during the marriage, it is assumed by the state of Texas to be community property and subject to division through the divorce process. It is important to note; this also includes any debt incurred during the marriage.
Separate property is property owned by one of the spouses before the marriage. It also includes property or assets obtained by the spouse during the marriage as an inheritance or gift.
In other words, if the couple purchases a home, regardless of who makes the payments or whose name is on the deed, it is community property. If one of the spouses inherits a home during the marriage, that home is considered separate property.
The Challenges
While this may seem straightforward, there are complex situations that can and do routinely occur. For example, if an inheritance is placed in a joint account and commingled with income from the other spouse, it is difficult to determine what is separate and what becomes joint when property is purchased using those commingled funds.
Other factors such as a spouse contributing to the upkeep of a separate property, using their funds to pay taxes, or making improvements on the property can also create the need for a distribution during the divorce.
To avoid the cost of divorce appeals over these types of situations, work with an experienced divorce attorney during the initial negotiation of the terms of the divorce. Contact Orsinger, Nelson, Downing & Anderson, LLP for any divorce cases in Dallas.
