Strategies To Ensure You Don’t Lose Property You Brought Into Your Marriage
Your marriage has broken down and there appears to be no way forward except divorce. You brought substantial assets into the marriage and have concerns you might lose some of your hard-earned net worth under Texas community property law. Here are some steps you can take to protect what you owned before getting married.
Community Property Law in Texas
Texas is among the minority of states that follow community property law, rather than equitable distribution principles, when allocating debts and assets in a divorce proceeding. Under Texas community property law, all debts and assets of a marriage are identified as either community property or separate property:
- Community property is any property wholly or substantially acquired while the parties were legally married. Each spouse has a half-interest in all community property. Property brought into a marriage can become community property if it is paid for primarily with marital assets. For example, if one spouse purchased a house a year before getting married, but then the couple paid the mortgage on the house using joint funds while married for 20 years, the house is likely to be considered community property.
- Separate property is any property acquired by only one of the parties before the marriage, as well as any property acquired by only one party during the marriage by gift or inheritance or as compensation for a personal injury (e.g., a lawsuit settlement or judgment).
Strategies To Protect Your Assets in a Texas Divorce
There are a number of ways to minimize your risk of losing property in a Texas divorce:
- Have an attorney prepare and execute a valid prenuptial or postnuptial agreement—Prenuptial and postnuptial agreements are contracts that set forth what will be considered community property and what will be considered separate property in the event of divorce. A prenuptial agreement is put in place before marriage, and a postnuptial agreement is signed after entering marriage. These agreements must generally be in writing, must be signed by both parties, and must involve full and fair disclosure of all debts and assets prior to execution.
- Don’t commingle debts and assets—If possible, keep any separate bank accounts you had before marriage. If there are payments remaining on property, such as a home mortgage or car note, make those payments from a separate account, and keep only your name on the title to the asset. If you receive money or other valuable property as a gift or inheritance, or if you receive a judgment or settlement in a personal injury claim, keep the property or funds separate from family or marital accounts, and keep it titled in your name only.
- Put your separate property into a trust prior to marriage—A trust is a separate legal entity with the right to own, buy, sell, or trade property. Property placed in a valid trust will not become marital property.
Contact the Proven Family Law Attorneys at The Loftin Firm
If you’re headed for divorce and have concerns about keeping property you owned before marriage, The Loftin Firm can help. Over the past quarter of a century, Attorney Loftin has provided comprehensive divorce and family law counsel to men and women across the Lone Star state, including clients involved in disputes related to the division of marital assets under Texas community property law. We can anticipate the arguments of opposing counsel and take the necessary steps to protect your rights.
Contact The Loftin Firm online or call attorney Loftin at 817-441-8933 to set up an appointment. There is no cost or obligation for your first meeting.
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