Community Vs. Separate Property In Houston
Texas is a community property state. This means that most property acquired during the marriage will be divided between the divorcing spouses. There are, however, certain assets and separate property that are exempt from that division and cannot be divided as part of the divorce.
The characterization of assets as either community or separate is often disputed in divorce. As emotions run high, it is important to have representation equipped with the skill and experience to circumvent the emotions and provide a clear understanding and valuation of all assets involved.
For more than 35 years, high net worth individuals throughout the Houston area have trusted the abilities and success of Fabio & Merrill‘s characterization lawyers. Our attorneys are equipped with a veteran understanding of this process and know how to accurately characterize all assets involved.
What Is Separate Property?
Property that is acquired during the marriage is considered community property. Exclusions from this include inheritances and gifts specifically to one spouse or property brought into the marriage by one party. This will be recognized as the spouse’s separate property and exempt from the division of assets.
Any interest, coupons or dividends earned, however, from an inheritance that is invested during the marriage must be identified and will likely be considered community income. If community money is invested in the separate property account, it causes the property to be commingled and subject to division. It is possible to hire forensic accountants to trace separate assets and help secure them for the receiving spouse.
It is critical that you have the skill and veteran experience of a firm that deeply understands these valuations and tracings, as well as all exemptions, to ensure that your assets are divided fairly and equitably.
What Is Community Property?
Any assets held or acquired during the marriage are considered community property in Texas, including business interests, real estate, retirement accounts and other property. These assets must be divided fairly and equitably. This does not necessarily mean a 50-50 split; rather, the final division agreement must divide assets and property in such a way that is fair and equitable, considering all factors in a divorce.
Your financial future depends on the ability of your representation to create a resolution that protects your interests and ensures that you are awarded all that you are entitled to.