In Texas, separate property includes certain assets that wholly belong to an individual and are therefore not considered for division during divorce. Understanding what qualifies as separate property in a Texas divorce can significantly impact the division of assets, especially because handling separate property in certain ways can transmute it into community property, which is subject to division.
If you are getting a divorce, you must understand what the courts consider separate property to protect your rights during the process. In this blog post, we’ll review a few different types of property that may be considered separate and circumstances that could jeopardize an asset’s separate status.
Types of Separate Property in a Texas Divorce
There are several conditions that could impact whether property is considered separate from community property. These conditions include property owned before marriage, gifts and inheritances, and personal injury recoveries.
Property Owned Before Marriage
Any asset owned by a spouse before the marriage qualifies as separate property. This includes real estate, vehicles, bank accounts, investments, and personal items.
The key factor is proving that the asset was acquired before the marriage date. Documents like purchase receipts, titles, and bank statements often serve as evidence to support these claims.
Gifts & Inheritances
Gifts and inheritances received by one spouse during the marriage also fall under separate property. Even if the asset was acquired during the marriage, it remains separate if it was intended solely for one spouse.
Documentation, such as a gift letter or a will, proves the nature of the gift or inheritance. Keeping these assets separate from community property is essential to avoid commingling, which can complicate matters.
Personal Injury Recoveries
Compensation from personal injury claims can be separate property, provided it compensates for personal suffering or disability. However, if the compensation covers lost wages or medical expenses incurred during the marriage, it may be considered community property. Documentation of the settlement agreement or court judgment helps determine the nature of the compensation.
Commingling Separate & Community Property
When separate property is commingled (mixed in) with community property, the total could be considered community property and subject to division during divorce.
For example, depositing inheritance money into a joint bank account can lead to commingling. As another example, depositing income earned during marriage into a separate savings account could transmute the whole account into community property.
Proving Separate Property Is Your Responsibility
At the beginning of the divorce process, the court assumes all assets are community property. This means you bear the burden of proving an asset is your separate property with clear and convincing evidence.
This high standard of proof ensures that the property division remains fair and just. Proper documentation, meticulous record-keeping, and the assistance of professionals such as an experienced divorce lawyer and/or forensic accountant can strengthen separate property claims.
We Can Provide the Legal Support You Need
When you’re going through a divorce, it’s important to protect your separate property to ensure a fair division of assets between you and your spouse. Because the burden of proof is your responsibility, you need an experienced attorney who can help you gather and assemble the evidence you need to make your case.
We at Kay Polk, Attorney at Law are experienced advocates for our clients. Our divorce lawyer has the legal skill and professionalism required to address even the most complex property division matters during a divorce. You can learn more about our services by scheduling a consultation with us today.
Get in touch with us today to get started.
