PROPERTY
Separate property
1. Property owned or
claimed by a spouse before marriage
2. Property acquired by
a spouse during the marriage by gift or inheritance
3. Recovery for personal
injuries sustained by a spouse during marriage, except for any recovery for loss of earning
capacity during the marriage.
Texas Property Division
1. Texas is a “community
property” state.
a. In theory, this means that the division follows a mathematical
formula, with little room for the judge to improvise.
b. The formula calls for all property to be divided into “marital” and
“separate” property. “Marital” and quasi-community property is divided 50/50.
c. The “Separate”property of each party stays with that party.
Marital Separation and Property Settlement Agreement
1. A marital separation
agreement, also known as a property settlement agreement, is a written contract dividing your
property, spelling out your rights, and settling problems such as alimony and custody.
2. A marital separation
agreement may be drawn before or after you have filed for divorce — even while you and your
spouse are still living together.
3. When you initially
execute a marital separation agreement you usually do not have to file the separation
agreement with the court to be effective.
4. When and if you begin
the divorce proceedings, you will attach the separation agreement to your divorce papers and
ask the court to merge, but not incorporate, the agreement into the final judicial decree.
5. If the marital
separation agreement is incorporated into the decree, it becomes a court order and is
enforceable by the court.
6. If you don’t
incorporate the separation agreement into your decree, it simply becomes a contract or
agreement between you and your spouse.
Debts and Liabilities
The liability of each spouse for debts of the other spouse depends on the type of debt and the type
of marital property. These rules are governed by Section 5.61 of the Texas Family Code:
1. A spouse’s separate
property is not subject to liabilities of the other spouse unless both spouses are liable by
other rules of law.
2. Unless both spouses
are personally liable by other rules of law, the community property subject to a spouse’s sole
management, control, and disposition is not subject to:
a. any liabilities that
the other spouse incurred before marriage; or
b. any notorious
liabilities that the other spouse incurs during marriage.
3. The community
property subject to a spouse’s sole or joint management, control, and disposition is subject
to the liabilities incurred by him or her before or during marriage.
4. All the community
property is subject to tortious liability of either spouse incurred during marriage.
|