Financial assets are those that were acquired during the marriage period and are subject to Texas community property laws. The court uses the “just and right” principle when dividing those assets in a divorce. However, that doesn’t necessarily mean a 50/50 split. The court has some leeway to ensure a fair and equitable distribution depending on each couple’s circumstances.
Yours, Mine, And Ours
When a couple decides to divorce, determining marital property is vital to proper division. Anything acquired after the date of the marriage is usually considered a marital asset and is subject to division.
Assets that were acquired before marriage by either party are usually considered “separate property” and not subject to the divorce property division. To ensure that the asset stays separate, the owning party must keep it separate from marital assets. In some cases, something can be declared separate property to keep it out of the marital estate, such as an inheritance or other type of gift.
For instance, rental property that’s acquired by one party before the marriage must stay in the owner’s name, and income cannot be commingled with marital funds or assets. Once that happens, it can be judged as “marital property” and subject to possible division.
Protecting Your Interests
If you’re planning to get married, a prenuptial agreement is one way to protect yourself beforehand. Couples make decisions about asset division and other interests beforehand, eliminating the need for litigation. For couples already married, a post-nuptial agreement will do the same thing. Review these documents when you begin preparing to file for divorce.
During the marriage, keep your assets separate from the marital assets. This includes any valuables you brought to the marriage, anything you were gifted, anything you inherited during the marriage, or any proceeds from a personal injury settlement.
Make sure that you do not combine or commingle any separate monies with the marital funds—use a separate account for these. Keep complete and detailed, in-depth records of all transactions during the marriage, as well as an asset inventory.
Speaking of inventory, the ideal time to begin is before the divorce. Include:
• Bank accounts
• Credit cards
• Life insurance policies
• Retirement accounts
• Business interests
• Brokerage accounts
• Trust funds
• Real estate
• Vehicles
• Furniture
• Luxury goods, such as jewelry, art, furs, etc.
With this list, you’ll have an accurate financial picture and make it harder for your spouse to try and conceal anything from you or the court. From there, you can begin to draft a post-divorce financial plan for yourself.
Note that retirement accounts may be considered a community asset and may be subject to division.
Because divorce can be an emotionally draining experience, your judgment may be clouded when making these decisions. The decisions you make now are very important to your future. Don’t rush into anything. Discuss them first with your divorce attorney and possibly a financial expert to ensure you’re making the right decisions for you and your children.
Fort Worth and Tarrant County Divorce Attorney
Wendy L. Hart has been helping people in the Fort Worth area with all their family law issues since 2001. She represents both men and women in all aspects of divorce, including spousal and child support matters.
When you’re ready, contact us via our online contact form, or call us at (817) 842-2336. Divorce is a difficult and emotional process, so don’t try to handle it on your own. Contact The Law Office of Wendy L. Hart and get the help you need.
