Could You Be Surprised by a Decision About Separate Property?

 Posted on September 17, 2024 in Complex Property Divorces

Complex property division issues are more common than you might think. The issue of separate and marital property often falls into that category. While some people are blindsided when they learn during a divorce that their spouse has separate property, others are aware of the non-marital property. But what if both parties are certain that one or both spouses have separate property, only to learn that the court disagrees?

As a community property state, property in Texas acquired during marriage is presumed to be marital property, to be split equally during a divorce. The evidence required for a claim of separate property involves showing that the source of funds used to purchase the asset is from a source that would be deemed separate property. Evidence can also show that the funds or property include the spouse's inheritance, gift, or money the spouse had before the marriage.

As much as you may think you know which assets are separate and which are marital, it is worth a double-check, as recent Texas court decisions have hinged on how a deed is specifically worded. If you have any doubts or questions about whether your separate property could potentially be deemed marital property during a divorce, it is essential that you speak to an experienced Fort Worth, TX complex property division attorney from The Law Office of J. Kevin Clark P.C..

Can the Wording of a Deed Affect Separate or Marital Property Designation?

Consider the case of a Texas couple, where the husband acquired an Alvarado property from his parents. The deed stated his name, "a married person," as the grantee. During the divorce, the husband claimed since the property was a gift from his parents – and he was the only name on the deed – it was his separate property. The court disagreed, saying that because the language of the deed included "for a consideration of $10," it was not a gift and, therefore, was community property.

Another Texas man bought several properties during his marriage with the loans in his name only and the deeds in his name only. He assumed those properties were separate property, but during his divorce, the court held that all but one of the properties were community property based on the fact they were purchased during the marriage. The one exception was a property which used the wording "a married man, as his sole and separate property and not joined in by his spouse." The takeaway from this is that the wording on deeds matters when it comes to marital and non-marital property during a divorce.

What Are the Different Types of Property During a Texas Divorce?

Property division can get extremely complicated during a divorce. There are essentially four types of assets to consider in a community property state like Texas:

•  Marital (community) property is any property acquired during the marriage, regardless of how it is titled.

• Separate property is property owned before the marriage (assuming it has not been commingled), as well as a gift or inheritance obtained before or during the marriage. A spouse claiming separate property must prove that assertion by clear and convincing evidence.

• Quasi-community property assets are those acquired during marriage prior to moving to a community property state.

• Mixed character assets are acquired using both separate and community funds. Like separate property, there must be clear and convincing evidence that part of the asset is separate property.

Contact a Fort Worth, TX Complex Property Division Attorney

If you are contemplating divorce and are worried that properties you think are separate could actually be deemed community property, it is crucial that you speak to a knowledgeable Fort Worth, TX complex property division attorney. Attorney J. Kevin Clark is a member of the Texas Bar Association and the Tarrant County Bar Association and is highly skilled in complex property disputes. Contact The Law Office of J. Kevin Clark P.C. at 817-348-6723 to schedule your free consultation.