What Happens To Property Owned Before Marriage In Texas?

From debt and hidden assets to out-of-control spending and deceit, financial issues remain one of the biggest causes of concern for many married couples. According to an article for divorce.com, money disagreements account for 40% of the most common causes of divorce among couples. 

Financial issues can be a serious problem within a marriage. Furthermore, getting a divorce in Texas can complicate the division of those assets. For those who may not know, Texas is one of 9 states within the U.S. that is a community property state. 

Follow along for more information on exactly what a community state means, why it’s important, and what happens to property owned before marriage in Texas.Need a divorce attorney in Houston? Contact Daniels Law Firm today.

What To Know About Separate & Community Property In Texas

Not everyone understands what it means to have separate versus community property in the state of Texas once married. The following breaks down into what you should know about defining the two for yourself.

Defining Community Versus Separate Property

Texas is a community property state. This means that any assets or funds acquired during your marriage are considered shared or community property. The “community” refers to the union between you and your spouse. Community property does not include separate property of any kind.

Separate property is:

• Owned or claimed by a spouse before marriage
• Acquired during marriage through a gift, devise, or descent like an inheritance
• Recovered for personal injuries sustained by the spouse during marriage, not including recovery for loss of earning capacity during marriage

If you have any particular questions or concerns before you file for divorce, contact a divorce attorney who can help. Many misunderstandings are best avoidable when you have an experienced divorce attorney in your corner to answer detailed questions regarding your case.

Are Gifts & Inheritances Separate Or Shared?

Gifts and inheritances, even acquired during the marriage, do not have to be shared with your spouse. It is your choice whether or not to do so, as they are separate property according to chapter 3 of the Texas Family Code. Discussing this with your spouse beforehand is the best way to be on the same page regarding receiving inheritance funds or gifts of any kind of value.Do you have specific questions regarding what happens to property owned before marriage in Texas? Reach out to Daniels Law Firm today.

Are Funds From A Personal Injury Settlement Community Property?

It depends. 

According to the Texas Family Code, bodily injury payouts for your medical bills and/or pain and suffering are likely your separate property. 

However, a payout from a personal injury claim regarding a loss of earning capacity can be community property. This is because your earning capacity is between you and your spouse during marriage.

If you’re thinking about hiding your assets to protect yourself in a divorce, it’s ideal that you reconsider this method. Hiding community property of any kind is fraud against the community, which can negatively impact your divorce. 

For example, a judge may decide in favor of your spouse regarding the property division in your divorce if evidence of committing fraud against the community is found. In this case, a judge may also decide what is “just and right” when dividing an estate between parties. This is completely out of your hands and should be avoided at all costs.

3 Ways To Protect Your Separate Property

So, what happens to property owned before marriage in Texas, and how can you ensure that it remains separate?

Your separate property is much better secured when you have legal records of keeping them separated. The following are various ways to secure your separate property by going through the legal process with a divorce attorney who can help:

1. Have A Premarital Agreement

Chapter 4 of the Texas Family Code states that you have the right to lay everything you would like to deem separate property out on paper and/or on record. This way, there is no confusion in the future about what is considered separate and community property in case of a future divorce. This type of agreement must be in writing and signed by both parties. 

2. Obtain A Marital Property Or Post-Nuptial Agreement

You may still be able to define your separate property, bank accounts, and debt by having a marital property agreement. This is an agreement you would make with your spouse during your marriage that defines what you wish to keep separate. 

3. Provide Proof Of Separate Property

Commingling assets without proof can further complicate the division of your estate in a divorce. So, before you get married, you should maintain proper records to prove what you consider your own separate property. This might include assets such as a home, car, or other items of value you purchased or received before marriage. Keeping these specific records will help prove how and when you acquired each item in case you need them for your divorce. This is especially true if you ever commingle separate property or funds with joint accounts shared between you and your spouse. 

Searching For Legal Counsel For Your Divorce In Houston?

Whether you’re planning to be married, are already married, or considering divorce, it’s important to have a family law or divorce attorney on your side to help you sort out the details. Not only does having an attorney help throughout the divorce process, but they can also assist you in creating necessary documentation that defines separate and community property.

Contact Daniels Law Firm for in-depth support.

The information in this blog post is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Daniels Law Firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.