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Specialty tag(s): Complex Property, Property Division, Divorce

Texas Divorce and Property Rules: What Is Property Division, and How Does it Work in Texas?

Rachel Rizzieri Feist | November 3, 2025

Key Takeaways:

• Property division determines how assets are shared during a divorce in Texas.
• Texas follows a community property system, which impacts how marital assets are divided.
• Separate, community, commingled, and converted property are treated differently under Texas law.
• A fair division is based on a “just and right” standard, not always a 50/50 split.
• An experienced Texas divorce lawyer can guide you through the divorce process and help protect your financial future.

During a divorce, the question of how property will be divided between spouses is often a major concern. Understanding how property division works in a Texas divorce can help you navigate your financial future with confidence. Whether through negotiation or litigation, the outcome of property division can significantly affect your long-term stability.

What Is Property Division? 

Property division is the process of dividing a couple’s assets during a divorce. Texas is one of nine community property states, meaning that most assets acquired during marriage belong equally to both spouses. This legal structure is a key part of how courts handle divorce and property division in Texas.

Types of Property During the Divorce Process 

• Community Property: All assets acquired by either spouse during the marriage are considered community property, meaning that they are equally owned by both spouses, even if titled in one person’s name. Community property typically includes income, financial accounts, retirement benefits, and investments acquired during the marriage. Unless proven otherwise, all assets held at the time of divorce are presumed to be community property and must be fairly divided between the spouses.
• Separate Property: Separate property is any asset owned before marriage or acquired individually through gift, inheritance, or a personal injury settlement. Under Texas law, a court cannot divest a spouse of separate property. These assets remain under sole ownership and are excluded from community property division.
• Commingled Property: When separate property becomes mixed with community property to the extent that it’s difficult to separate, it is considered “commingled.” In most cases, commingled property is treated as community property unless clear documentation proves otherwise.
• Converted Property: Converted property refers to separate property that becomes community property through agreement or use during the marriage. Without a signed agreement establishing this conversion, courts generally treat the asset as separate property. 

Why Is Property Division Important? 

Property division ensures that both spouses receive a fair share of the marital estate. In many cases, spouses can reach an agreement through negotiation or mediation. However, if no agreement is reached, a judge determines how property will be divided based on fairness and equity.

A skilled Texas divorce lawyer can guide you through this process, helping ensure that your rights and financial interests are protected.

Factors in Texas Divorce and Property Decisions 

When a judge divides community property, it may not always result in a 50/50 split. Under the laws governing divorce and property division in Texas, courts must divide community property in a way that is “just and right.” This means that each case is reviewed individually to achieve an equitable, not necessarily equal, outcome.

Judges may consider several factors, including:

• Financial situation of each spouse
• Age and health of each spouse
• Childcare responsibilities and future employability
• Fault in the breakup of the marriage
• Attorney’s fees and legal expenses
• Nature and liquidity of assets
• Separate property and potential inheritances
• Tax implications and long-term financial stability 

These factors ensure the property division reflects fairness under the circumstances of each divorce.

Navigating the Divorce Process

The divorce process can feel overwhelming, but with experienced legal counsel, you can move forward with clarity and confidence. The best way to understand how property division may affect your case is to speak with an experienced attorney. A Texas divorce lawyer from Goranson Bain Ausley can help you make informed decisions throughout every stage of your divorce.

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Rachel Rizzieri Feist has extensive experience in family law and advocates for her clients’ best interests through negotiation, mediation, or litigation. She helps clients manage the emotional and financial complexities of divorce while creating a path toward stability.

If you have questions about property division or any other family law issues, please contact Dallas Family Lawyer Rachel Rizzieri Feist at Goranson Bain Ausley.