Spouses contemplating divorce due to a decline in their marital relationships often worry about the future. They do not want to spend the rest of their lives in a relationship fraught with unnecessary conflict or a lack of trust.
However, they may feel anxious about the prospect of upending the life that they have built. Anxiety about the future, especially financial matters, is common during divorce proceedings. After all, people generally don’t know what to expect.
What little information people have about the divorce process may come from social acquaintances or popular media. The stories they hear may not accurately reflect the law in Texas. Texas, unlike much of the country, is a community property state. What does that mean for the division of marital resources when spouses divorce?
Judges must consider the situation carefully
Litigated or contested divorces occur when spouses ask a judge to settle their disputes. Relying on a judge to apply the community property statute to the marital estate can help spouses settle disagreements about their shared assets.
Spouses generally need to make disclosures to the courts and one another regarding their assets and shared debts. Anything acquired during the marriage is subject to division in a divorce as part of the marital estate.
Judges can allocate the ownership of assets to either spouse. They can order the liquidation of certain resources. They can also make spouses responsible for specific marital debts. Community property rules are not necessarily as simple as people presume.
A 50/50 split of assets could occur, but judges have the authority to deviate from an even division of property. Spouses can present information about their health, earning potential or separate holdings that could help justify decisions to unevenly distribute marital resources.
Spouses have the option of settling
It is not mandatory for spouses to litigate property division matters. They have the option of cooperating with one another if they can agree on key matters. Negotiating a settlement outside of court can be beneficial for people who prioritize retaining certain assets or securing specific terms.
Creating a rough inventory of assets can be a good starting point for those contemplating divorce and feeling concerned about their finances. People who learn about community property proceedings can use that information as they prepare for divorce and for life after the end of a marriage.