When a couple divorces in Texas, community property laws dictate how they divide their assets. However, only marital or community property is subject to division. The separate assets of either spouse will usually not get split up in the divorce proceedings.
Those with substantial personal property will have an interest in protecting their separate property by exempting it from the asset division process. What are the most common ways for people to protect their separate property in a Texas divorce?
With a marital agreement
A prenuptial or postnuptial agreement allows either spouse to designate certain assets or even debts as their separate property. Many couples choose to execute prenuptial agreements before they get married to designate certain assets as separate in case they divorce. Others experiencing marital hardship may agree to a postnuptial agreement that earmarks certain assets as separate property.
With a careful analysis of financial records
Marital agreements are great options for some couples, but only if both parties agree on everything. When spouses don’t agree, they may fight over which assets they have to share and which ones they don’t.
A spouse hoping to protect specific assets may be able to do so with a thorough review of financial records. Proof that someone owned an asset before marriage or that they maintain separate accounts with no commingling after inheriting property can be enough to protect assets from division in Texas divorces.
Learning about the property division process in Texas can help empower you to better protect yourself and your long-term financial goals.