What Factors May Convert the Property of One Spouse to the Property of the Marriage?
Under the community property laws in Texas, marital assets are either “separate” property or “community” property. It’s important to understand, though, that what started out as separate property may, through a number of different circumstances, be converted to community property. How can this happen and what is the potential impact?
Texas Has Long Been a Proponent of Community Property Principles in Divorce
For all of its storied history, the Lone Star State has embraced the community property approach to the division of marital assets, adopting the practice in its constitutional convention in 1845. Under the Texas laws, marital property is commonly identified as either separate property (subject to full return to its owner) or community property (which must be subject to a “just and right” allocation).
How Can Separate Property Be Converted to Community Property in Texas?
There are generally two specific ways that separate property in Texas can morph into community property:
- Commingling—Under this approach, the parties either place separate property into a joint account (investments or funds owned exclusively by one party are placed in a joint bank or investment account) or use marital funds to finalize the purchase of or make improvements to separate property.
- Transmutation—Here, the parties either prepare a written agreement conveying separate property to the marital estate or take some type of action that has a similar effect. For example, the parties may retitle a vehicle or a piece of real property to be jointly owned by husband and wife.
What Is the Effect of Converting Separate Property to Community Property
Any assets that become community property will be subject to a “just and right” division under Texas law. Such an allocation often involves (but does not require) an equal split of the value of the property.
Contact DTX Family Law for Guidance in a Texas Divorce
At DTX Family Law, we always give top priority to the needs and best interests of our clients. We know that the legal process can be complex and confusing, and we’ll carefully explain your rights and options, as well as your chances of success, so that you can make good decisions for you and your family. Chrysandra is board-certified by the Texas Board of Legal Specialization, an honor earned by less than one of every ten family law attorneys in the state. To schedule an appointment with a proven and effective Texas family lawyer, visit our website or call our offices at 940-566-0606. We can help you determine whether an agreement incident to divorce is in your best interests and can draft one for you, if necessary.
Handling Divorce and Family Law Matters throughout Denton and the surrounding communities, including Denton, Collin, Wise, Tarrant and Cooke counties, as well as the cities of Flower Mound, Highland Village, Bartonville, Lake Dallas, Corinth, Frisco, Northlake, Trophy Club, Haslet, Justin, Ponder, Coppell, The Colony, Lantana, Argyle, Roanoke, Copper Canyon, Hickory Creek, Lewisville, Little Elm, McKinney, Allen, Princeton, Anna, Lavon, Melissa, Parker, Lavon, Westminster and Weston