New Braunfels Property Division Attorney

Lawyer Assisting With the Division of Marital Property in New Braunfels, Texas Divorce Cases

When your marriage ends, the assets you and your spouse own will be divided. Different types of property will need to be assigned to one spouse or the other. This part of the divorce process may lead to conflicts as you both try to keep property that is important to you while also protecting your financial interests. Understanding the laws that may affect property division and the options for resolving conflicts can help you get through your divorce successfully while maintaining financial stability.

The attorney at Hill Family Law can provide guidance on what you will need to address when dividing your marital estate. With extensive experience in Texas divorce cases, a thorough knowledge of the laws that apply to community property, the ability to investigate complex financial issues, and skills in negotiating agreements, he can help you reach a favorable outcome so you can leave your marriage with a stable foundation for the years ahead.

What Counts as Community Property in Texas?

Property that is jointly owned by married spouses is known as community property. This includes anything that either spouse acquired during the marriage. Wages, retirement contributions, and items purchased with those earnings are all considered to be community property, no matter whose name appears on the title to property, a bank account, or other ownership records. Community property will be divided between a couple during the divorce process.

What Qualifies as Separate Property?

There are three categories of separate property that may be handled differently from community property:

• Premarital Property: This includes anything a spouse owned before a couple's wedding day.
• Gifts and Inheritances: Property that one spouse received individually as a gift or through a will or inheritance is treated as separate property, even if it was acquired during the marriage.
• Personal Injury Recoveries: Money awarded for a personal injury that a spouse has suffered is considered to be separate, except for any compensation that was meant to replace lost earnings that a person would have earned during the marriage.

Why Community Property and Separate Property Can Become Commingled

Separate property will stay with the spouse who originally owned it. However, there may be some confusion about which assets can be kept separate and which assets should be divided. Married couples rarely keep their finances completely separate. Commingling can happen when separate property and community property are mixed together.

If a spouse owned a house before a couple's marriage, it is their own separate property. However, if the other spouse contributed to the house during the marriage, such as by contributing their income toward mortgage payments or performing repairs or improvements, they may have a claim to ownership of some of the equity in the house. Other examples of commingling include depositing an inheritance into a joint bank account or refinancing separate property in both spouses' names.

A spouse may need to trace certain assets to demonstrate their origin as separate property. They may also be required to reimburse the marital estate for contributions to their separate property. This may be done by making a cash payment to the other spouse or by distributing a larger share of marital assets to the other spouse.

Types of Property Divided in a Divorce

The assets that a couple may need to divide may include their marital home and other real estate. Retirement assets, including 401(k) plans, pensions, and IRAs, may need to be addressed when these benefits have been earned during a marriage. Ownership of businesses and professional practices may need to be addressed, and business owners may need to negotiate agreements that will allow them to maintain ownership and control of their companies. Couples may also divide stock options, cryptocurrency, vehicles, boats, household furnishings, jewelry, artwork, and other items they own.

Debts are part of the marital estate as well. Mortgages, credit cards, car loans, or tax liabilities may need to be allocated between the spouses as part of a property settlement. However, creditors are not required to follow the decisions made during a divorce, and they may attempt to recover payments for joint debts from either party. Because of this, it is often advisable for spouses to take steps to pay off debts during the divorce process whenever possible.

Addressing Hidden Assets and Wasted Funds

In some cases, a spouse may try to avoid sharing certain property with the other party during a divorce. A person may try to hide money or other property with relatives, delay bonuses or business deals until after the divorce, or conceal assets in other ways. A person may also dissipate marital assets by using them for non-marital purposes, such as by spending large amounts of money on a new romantic partner.

After a divorce petition has been filed, the court may issue temporary orders and injunctions that will prohibit either spouse from transferring, concealing, or destroying property. Spouses are required to disclose information about assets and income to each other, and when reviewing this information, discrepancies may be discovered. Our lawyer can assist with the discovery process, gathering information through written questions, document requests, depositions, or subpoenas to banks and employers. This can help identify any hidden or dissipated assets.

If a spouse has committed fraud on the community by taking actions that reduced the overall value of community property, the court may calculate the amount that has been lost, and the other spouse may be awarded a larger share of marital property. Our attorney can make sure these issues will be handled correctly while advocating for solutions that will protect a person's financial interests.

Contact Our New Braunfels, TX Property Division Lawyer

During your divorce, a clear understanding of how community property and separate property will be handled can help you protect what is rightfully yours while negotiating an agreement that will meet your needs. Contact the New Braunfels, Texas asset division attorney at Hill Family Law by calling 830-229-2129 to arrange a free consultation and learn about the best ways to address these issues.