Is Texas a Community Property State?

• What is community property in Texas?
• How is community property divided in Texas?
• What is not community property in Texas?
• How to define separate property
• Can courts award spousal maintenance?
• How does community property impact the family?
• References

Texas is a community property state. Any assets and debts you acquire from the day you get married belong to both you and your spouse. 

As you work through your divorce, you must decide what portion of your estate remains with you and what part goes to your ex. Texas rules can help you decide. 

What is community property in Texas? 

You may acquire all sorts of assets and debts during your marriage. Many of these become part of community property that you will split with your spouse when you divorce. 

Community property typically includes the following:

• Employment benefits: Your salary, tips, and other payments from your job are part of community property. Unemployment compensation counts as well. 
• Pension plan contributions: Payments you or your employer made to pension or retirement accounts during your marriage are part of community property.
• Property: Your primary residence and rental properties purchased during marriage typically become community property. 
• Major purchases: Computers, televisions, cars, and other items you bought together should be split when you divorce. 

Debts are community property, too. Credit card balances, mortgages, car loans, and other financial tools are typically split during a divorce so one party isn’t left to shoulder debt that was acquired during the marriage. 

How is community property divided in a Texas divorce?

You're required to divide community property during a Texas divorce. Your arrangements must be fair enough to pass inspection by a judge during your divorce hearing. If you and your spouse are amicable, you may be able to make these decisions together. If you are unable to sit down and discuss and resolve property division issues, however, a judge will do it for you.

Your Final Decree of Divorce will outline the following:

• Items you will keep 
• Items you will sell, and how those profits will be split 
• Items considered separate property (not included in community assets)
• Debts you and your partner will pay 

What is not community property in Texas?

You likely entered your marriage with assets. Those assets may or may not leave the marriage with you, depending on whether they were used to fortify your marriage in any way. For example, if you had an inheritance before your wedding, that was your separate property. But if you used the funds to make a down payment on your marital home, your inheritance is no longer your separate property. 

How to define separate property during a divorce 

Holding items out of community property conversations isn't always easy. Sometimes, couples disagree about what they should and should not split. Having proof of sole ownership is helpful. 

An accountant or financial professional could help you decide how to split your estate fairly. A mediator can also help you hold civil discussions and reach a resolution together more quickly than you could on your own. 

Read: A Beginner's Guide to Divorce Mediation

Can courts award spousal maintenance?

Texas laws include provisions for spousal maintenance (sometimes called alimony). If you have so little left after splitting community property that you can’t meet your needs, a court could force your ex to pay you. 

Some people also develop spousal maintenance plans during their divorce negotiations. You might agree your spouse to keep their retirement accounts in exchange for payments lasting a few years, for example. 

Negotiation with your partner before your divorce hearing can prevent judges from making plans you both dislike. It pays to work together. 

How does community property impact the family?

The court is required to make a "just and right division" of your community property, taking your children's needs into account. If you keep custody of your children and your spouse cannot make reasonable child support payments, the court could shift more community assets to you to help benefit your family and offset the lack of financial support from your ex.

Working with your ex on these plans is wise. Together, you can develop strategies that ensure your children are comfortable after the divorce. 

Frequently Asked Questions About Community Property in Texas

What is community property in Texas?
Community property includes most assets and debts acquired during marriage, such as income, real estate, retirement accounts, and vehicles. Texas law presumes both spouses equally own these assets.

What property is not considered community property?
Separate property includes assets owned before marriage, gifts, inheritances, and certain personal injury settlements. To stay separate, these assets must not be mixed with marital funds.

How is community property divided in a Texas divorce?
Courts divide property in a way that is “just and right,” which may not always be an even split. Judges may consider earning ability, child custody, and fault in the breakup.

Can we decide how to divide property without going to court?
Yes. Spouses can create their own settlement agreement dividing assets and debts. If the court approves, this agreement becomes legally binding.

What happens if community and separate property are mixed?
This is called commingling. If funds or assets are mixed, it may take financial tracing and records to prove what portion remains separate.

Can community property rules be changed by agreement?
Yes. A prenuptial or postnuptial agreement can define how assets are classified or divided, as long as it meets Texas legal standards.

How to Address Community Property in a Texas Divorce

Identify all marital assets and debts
List all income, property, savings, retirement accounts, loans, and credit card balances accumulated during marriage.

Separate community and separate property
Review which assets belong to both spouses and which qualify as separate. Keep clear records to support these claims.

Gather supporting documents
Collect deeds, bank statements, and account records that prove when and how each asset was acquired.

Discuss division options
Talk with your spouse about a fair division. Mediation can help when you cannot agree.

Draft a property settlement agreement
Once you reach agreement, put the terms in writing. This becomes part of your divorce paperwork.

Get court approval
File your settlement agreement with the court. Once approved, it is included in your divorce decree and legally enforceable.

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References