San Antonio Property Division Attorneys

Property Division in Texas Divorce

Family courts in Texas are tasked with ensuring that marital property is divided in a way that is “just and right”. Before this division occurs, the property must be accurately classified and valued.

Texas is a community property state, which means that assets acquired during the marriage are owned equally by both spouses and are subject to division in a divorce. This principle applies to a wide range of assets:

• Real estate
• Bank accounts
• Investment accounts
• Vehicles
• Personal items
• Retirement funds

Separate property includes assets owned before the marriage or received as a gift or inheritance during the marriage. However, depending on how the separate property was managed or used after it was received, it can become subject to division.

Key Factors in Property Division Cases

Property division cases often involve complex issues that require careful legal analysis, strategic planning, and a thorough understanding of Texas law.

Fair Valuation of Assets

A fair and equitable property division is not possible without accurately determining the value of assets. This is more difficult when it comes to things like real estate, business interests, collectibles, and intellectual property. Valuing these assets may require the assistance of expert appraisers and financial professionals.

Hidden Assets

Sometimes, divorcing spouses attempt to hide assets in order to avoid splitting them. A forensic accountant can search for these assets by carefully reviewing financial records, tax returns, and other documents.

Commingling of Assets

Commingling happens when separate assets are combined with marital assets. All assets are presumed to be community property and thus subject to division in Texas, unless a spouse can “trace” their separate interests.

One simple example of commingling is when a spouse has a bank account prior to marriage, and then deposits their income into that same account after marriage. The funds on balance prior to marriage are the spouse’s separate property, but it is the spouse’s obligation to claim and “trace”  their separate interest. Otherwise, the entire account will be subject to division on divorce.

In some cases, determining which portion of commingled assets is a spouse’s separate property can be very complicated, necessitating the assistance of a forensic accountant.

What to Expect When Property Division Is Challenged

The property division process typically involves the following steps, each requiring careful attention to detail and strategic legal planning:

• Information Gathering Both parties will engage in discovery, gathering, and sharing information about their assets, debts, income, and expenses.
• Negotiations The parties may attempt to resolve their property division dispute, often through working with a neutral third-party mediator.
• Settlement If negotiations are successful, the parties will sign a settlement that explains how marital assets will be divided.
• Trial If the parties are unable to reach an agreement through negotiation or mediation, the case will proceed to trial.

At trial, a family law judge will hear evidence and arguments from both sides and make a final decision on how to divide the property.

Our Property Division Legal Process

Our process begins with a free case evaluation, which is a phone call that takes about twenty to thirty minutes, during which we can discuss any concerns you have about your property division. These concerns may include:

• Never having been involved in the finances of your marriage, and are now in the dark about all assets, accounts, and debts.
• Your spouse intentionally hiding assets from you and refusing to cooperate with your requests for financial information.
• Your spouse transferring funds to an unknown account or engaging in wasteful spending.
• Your contribution to the purchase of assets during the marriage using your separate property, such as funds from an inheritance.
• Significant debts due to credit card usage or unpaid taxes.
• Property you owned before marriage that you’d like to protect from your spouse in the property division.