Community Property Laws: Texas

Texas is one of nine states that adheres to the community property doctrine as it applies to matrimonial possessions. In the eyes of the court system, the community property law regarding assets acquired during a marriage sort of works like, "What's mine is mine and what's yours is mine." There are some exceptions to this rule, however. This article will address the differences between personal and community property in Texas, as viewed by the court system in matters of marriage and divorce.

All property and most debts acquired by either spouse during a marriage are considered community property - meaning one has just as much legal right and liability to them as the other. All property acquired by either spouse before the marriage or property acquired during the marriage by way of inheritance or gift is considered separate property. Basically, if your wife's aunt Martha died and left millions to your wife, you are not entitled to any of it - even during a divorce. Separate property will not be awarded to the other spouse by the court. In some cases, separate property can be converted to personal property and vice versa, but the process is long and tedious - often times, not worth the effort. Of the same token, just because only one spouse is named on the deed or title to things purchased during the marriage such as homes or cars, does not make them separate property.

Where debts are concerned, you remain liable for all that you incurred and even some of those that your spouse incurred. It does not matter what the divorce decree says in regards to who will be liable for which debts. Divorce decrees are not binding where creditors are concerned and you can still be sued. Should this happen, your only recourse is to sue your spouse to collect the amount of the suit against you from the creditor. If that spouse happens to file bankruptcy, that countersuit isn't going to get very far.

Residing in a community property state can be beneficial in some instances, such as when one spouse refuses to give the other their fair share of matrimonial assets during a separation or divorce. These laws provide a legal avenue for the slighted spouse to collect their just due. On the flip side of that, they can do exponentially more harm than good in situations where one spouse amasses large amounts of debt which the other spouse with a perfect credit history ends up being liable for.

As always, there are many variables to consider in each situation and nothing you find on the Internet should be substituted for legal advice. It is prudent to contact a qualified attorney to get your specific questions answered with information as it applies to you.

Sources:

Divorce.net Texas Property FAQ

Raggio Law Texas Marital Property Issues