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Classifying Marital and Non-Marital Property in a Texas Divorce

 Posted on July 14, 2023 in Divorce

McKinney Divorce LawyerIn a Texas divorce, assets and property are divided under community property laws. This means that marital property is divided equally. Generally, marital assets include assets acquired during the marriage. Non-marital assets – also referred to as separate – are usually excluded from the division and stay with the spouse that originally “owned” the asset. If you are going through a divorce, it is important to understand how courts qualify assets and property and what this may mean for your financial future. The following are some of the assets that could be deemed non-marital assets.

Assets or Property Acquired Before the Marriage

Assets acquired by either spouse before the marriage are generally considered non-marital property. For example, if one spouse owned a house or had investments prior to the marriage, those assets would likely be considered non-marital.

However, if during the marriage, the other spouse’s income contributed to the mortgage, maintenance, and other expenses for the property, then the court could decide the property is a marital asset and subject to community property division.

Inheritance and Gifts

Assets or property received by either spouse through inheritance or as a gift during the marriage is usually considered separate property. However, it is important to note that if the gifted or inherited assets were commingled with marital assets, they may be subject to division unless proper steps were taken to keep them separate.

Property Excluded by Prenuptial or Postnuptial Agreements

Couples who have signed prenuptial or postnuptial agreements specifying certain assets as separate property can generally keep those assets separate in the event of a divorce. These agreements outline the division of assets and liabilities and can help protect non-marital property. One exception is if the court declares the agreement invalid because it was not properly executed.

Compensation from Personal Injury Lawsuits

Any compensation received by either spouse as a result of personal injury, such as a settlement or award in a lawsuit, is typically considered non-marital property. However, if the compensation includes damages for lost wages or medical expenses that were paid using marital funds, those portions may be subject to division.

Contact a Collin County Divorce Lawyer

In order to make sure you receive your fair share of the marital estate, it is critical to determine whether an asset is a marital or non-martial one. This process can be complex and there are certain circumstances that can have an impact on that classification. For example, if non-marital property increases in value during the marriage due to contributions from both spouses or marital funds, the increase in value may be subject to community property division.

To ensure you are fully protected, call The Ramage Law Group today at 972-562-9890 to schedule a confidential consultation with one of our dedicated McKinney, TX community property divorce attorneys.




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