Property and Debt Division
When a marriage is dissolved in Texas, the court must divide the spouses’ community and quasi-community property in a just and right manner and confirm the spouses’ separate property.
There is a presumption that every piece of property possessed by either spouse during or on dissolution of marriage is community property. The burden of proving that a particular piece of property is separate property is on the party contending so and must be established by clear and convincing evidence. Under the Texas Family Code, separate property is: property owned or claimed by the spouse before marriage; property acquired during marriage by gift, devise or descent; or the recovery for personal injuries sustained by the spouse during marriage except any recovery for lost wages resulting from the injury.
Sometimes couples commingle their separate property with community property. When this occurs, the issue of characterizing a particular asset becomes more difficult. The community property presumption can be overcome by ÒtracingÓ to establish the characterization of the property. Once the spouses’ assets and liabilities have been identified and characterized, the next step is to place a value on those assets and liabilities. Without a proper valuation of the spouses’ community assets and liabilities the court cannot properly exercise its discretion in making a just and right division of the community estate. An additional step in characterizing and valuing the spouses’ assets and liabilities is to establish any claims either spouse has that would affect the court’s division and confirmation.
Once all of the spouses’ community assets and liabilities have been identified, characterized and valued, the court must then divide the community property and liabilities between the parties. All assets and liabilities characterized as community must be divided in a just and right manner, taking into account the rights of each spouse and any children of the marriage. A just and right division of the community estate can be a 50-50 split or a disproportionate split depending on whether there are circumstances that justify awarding one spouse more than half of the community estate.