If you’re getting divorced in Texas, then you need to know about the property division rules. Texas is one of only a few states that has a community property system. A community property system creates a fair base for a divorce. Why? It means that you have to split your assets 50-50.
Of course, the only assets you’re intended to divide equally are marital assets. That’s why it’s very important for you to clarify which properties you own are your own separate property and which are marital property.
How do you define your separate property?
Your separate property will include items such as homes you purchased before your marriage or items you purchased during your marriage with inheritance funds. So, if you bought property prior to getting married, chances are that you won’t need to give your spouse half of their value.
On the other hand, if you and your spouse invested in property during your marriage, you’ll both be entitled to 50% of the value if you go through the traditional court system. You can negotiate for a different percentage, but 50% of the value of all marital property is guaranteed to each person through the state laws, in most uncomplicated cases.
What should you do if you don’t want to sell your community property?
There are times when people don’t want to sell their property. It might be that they love the home and don’t want to sell it to new owners or that they both see the property as an investment that needs to continue to grow. Fortunately, it’s possible to keep a property after a divorce.
There are a few options. You can decide to buy out your spouse’s half of the property, giving them other assets or cash for the value you’d owe them. You could also continue to own the property together and split the proceeds if you decide to sell at a later date. A third idea would be to rent the property, making money off it each month and splitting the revenue.
There are likely other possible solutions, too, so it’s a good idea to talk to your attorney if you want to keep a piece of property or multiple pieces of property after a divorce. There are usually ways that you and your ex-spouse can work together to resolve any kind of divorce dispute and come up with a unique settlement that works for your needs.