Are you dealing with property division during a divorce in Austin, TX? Decisions regarding property division can impact your life for years to come. Call Smith & Bledsoe Family Law at (512) 648-5487 for a free case evaluation with an experienced Austin property division lawyer.
Our attorneys have over 25 years of experience handling complex family law matters. We’re prepared to stand by your side and fight for the best possible outcome.
Why Choose Smith & Bledsoe Family Law to Help With Property Division During a Divorce in Austin, TX?
Our team at Smith & Bledsoe Family Law knows that property division isn’t just about numbers. It’s about securing your future and protecting your hard-earned assets.
Our award-winning Austin family lawyers are here to help you seek the outcome you deserve.
Members of our legal team have been recognized by respected organizations, including Super Lawyers and Austin Monthly (“Top Attorneys”). Our managing partner, Christian Smith, has earned the Client’s Choice award from the Avvo lawyer rating service and their perfect-10 “Top Attorney” rating.
Property division in a divorce in Austin, Texas, can have a lasting impact. Contact our Austin divorce attorneys today to arrange a complimentary case evaluation.
Overview of Texas Laws on Division of Marital Property
When it comes to property division, Texas follows a community property law. Under Texas law, property possessed by either spouse during marriage or upon divorce is generally presumed to be community property unless proven otherwise.
Still, that doesn’t mean that all property will be divided exactly 50-50 in a divorce. You have the opportunity to prove that the property is your own separate property.
What Is Treated as Marital Property in Texas?
Community property generally includes assets acquired by either spouse during the marriage, with certain exceptions. Debts incurred during the marriage may also be considered when dividing the marital estate.
What Are Examples of Marital Assets?
Some examples of marital assets include:
- Income and wages earned by either spouse during the marriage
- Real estate, including a family home
- Retirement savings and pension benefits accumulated during the marriage
- Stocks, bonds, and other investment funds
- Furniture
- Personal property, including artwork, collectibles, and jewelry, acquired during the marriage
- Household goods
- Vehicles
- Savings accounts
- Businesses and business interests developed during the marriage
These assets may be subject to division during a Texas divorce, along with any marital debts.
What Debts Are Considered Marital Liabilities?
Marital liabilities might include:
- Mortgages
- Credit card debt
- Tax debts and liens
- Car loans
- Home equity lines of credit
- Medical debt
- Student loans taken by a spouse or to benefit children
- Personal loans taken by either spouse
- Business loans
Under Texas Family Code § 7.001, courts must divide community property in a manner that is just and right, considering the rights of both spouses and any children of the marriage. This does not necessarily mean that each spouse will receive an equal share.
When Is Property Considered One Spouse’s Separate Property in Texas?
Separate property is not divided in a divorce. Each spouse is entitled to keep their separate property.
Separate property generally includes assets owned before marriage, gifts and inheritances received individually during marriage, and certain personal injury recoveries.
How Can a Prenuptial Agreement Impact the Division of Marital Property in an Austin Divorce?
Prenuptial agreements can also impact the classification of property.
Prenuptial agreements can:
- Provide that the income derived from separate property remains separate
- Maintain that real estate, businesses, and other property owned prior to the marriage remain separate
- Provide that each spouse’s income earned during the marriage remains separate
It’s important to examine the terms of any prenuptial agreement in a divorce.
What Factors Do Courts Consider When Making Decisions About Property Division in Texas?
Factors that courts will consider when dividing marital property include:
- The length of the marriage
- Each spouse’s earning capacity and employment prospects
- Each spouse’s contributions to the marriage, including earnings, homemaking, child-rearing, and supporting each other
- Evidence of marital misconduct and the reason for the divorce
- Child custody and parenting time arrangements
- Hiding or mismanagement of assets by either spouse
- Each spouse’s contributions to improving the value of separate property or marital assets
- Each spouse’s liabilities and debts
Circumstances matter when it comes to dividing marital assets. Fair and balanced does not necessarily mean equal. Because courts have the authority to authorize a disproportionate award, it’s important to be strategic when evaluating how your property will be divided in a divorce.
Can My Spouse and I Decide How to Divide Our Assets Without Obtaining a Family Court Judge’s Opinion?
While property division disputes often arise, it’s possible to agree without court intervention. Divorcing spouses may reach a better outcome without litigation. Many couples choose alternative dispute resolution methods or collaborative divorce.
While mediation and negotiation can begin with the best intentions, they can quickly become contentious. It’s always a smart idea for each spouse to hire an experienced property division attorney in Austin.
Different options may be available, including:
Mediation
Mediation is a process where two spouses work with a third-party mediator to resolve disputes. Couples may save money and keep family matters private by resolving their disputes outside of court. This approach often works best when both spouses are willing to negotiate and compromise.
Mediation may be mandatory before you go to court. It’s always a good idea to attempt to resolve disputes privately before going before a judge who doesn’t know your family.
Collaborative Divorce
Collaborative divorce is a voluntary process where two spouses agree to resolve issues privately. Spouses work with their attorneys and experts to reach an agreement. The upside is that both sides have complete control over the resolution.
If the collaborative divorce process ends without an agreement, the collaborative attorneys generally cannot represent the spouses in subsequent contested court proceedings. Each spouse typically must hire new litigation counsel.
What Happens When Separate and Community Property Are Mixed in Texas?
Commingling separate and community property can make it difficult to establish which assets belong to each spouse. However, separate property does not automatically become community property simply because funds are mixed. A spouse may preserve its separate-property classification by tracing the assets to their original source.
What Is the Process for Dividing Marital Property in Texas?
It’s important to know what to expect.
The basic process includes:
- Identifying marital assets and debts
- Proving the value of marital assets (opinions from professional appraisers may be needed)
- Identifying assets that you want to keep intact
- Dividing the assets and debts
Establishing priorities early on can be critical to your success.
What if I Suspect My Spouse Has Hidden Assets in Austin?
Texas courts can penalize a spouse who hides or fails to disclose assets. Still, that’s only possible when you can prove it. Hiring an experienced family lawyer in Austin is the best thing you can do if you suspect your spouse has hidden or wasted assets.
Our attorneys can hire forensic experts, subpoena bank records, and other financial documents to help you get to the bottom of things. Expert assistance can be vital to tracing assets and ensuring they are properly valued.
Contact an Experienced Austin Property Division Lawyer for a Free Case Evaluation Today
Property division is only one aspect of your divorce. If you’re dealing with property division in Austin, our attorneys at Smith & Bledsoe Family Law give you the guidance you need. We have the tools to handle even the most complex marital disputes.
Contact us today to discuss your situation with an experienced Austin property division attorney who can advocate on your behalf.