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Specialty tag(s): Characterization of Separate and Community Property, Divorce

Understanding Asset Division: How Divorcing in Texas Affects Your Assets

Megan Decadi | June 5, 2025

If you’re going through a divorce in Texas, one of the most important things to understand is how your assets will be divided. Family law in Texas follows community property rules, which means that any assets acquired by you or your spouse during your marriage will be considered equally owned by both of you and will need to be divided fairly between you. However, not everything is treated the same during the division of assets in a divorce because Texas also recognizes and protects “separate property”.

Knowing the difference between community property and separate property can make a big impact on what you keep and what gets divided. Whether it’s a house, retirement savings, or an item of personal property you owned before the marriage, understanding how family law in Texas handles these assets is the first step to protecting your property. Talking to a knowledgeable Texas family law attorney can help you feel more confident and prepared.

What Happens to Your Assets in a Texas Divorce?

During a divorce in Texas, the court will divide community property in a “just and right” manner according to the law, but that does not necessarily mean a 50/50 split. The facts of the case will be reviewed, and the court will then decide how to divide the community property equitably. Spouses can also agree on how to fairly and equitably divide their property rather than leaving that decision up to the court.

What Counts as Community Property in Texas?

Generally, all income and assets acquired during marriage are considered community property. In Texas, this can include:

• Income from employment
• Financial accounts
• Retirement accounts
• Homes and vehicles purchased while married
• Income from a spouse’s separate property asset (for example, rent received from a rental house owned by one spouse prior to marriage)

Even if only one spouse contributed financially to these assets, they may still be divided in court. This is why it’s important to have a family law attorney in Texas who can help make sure your interests are represented during the division of property.

What Is Separate Property, and How Is it Treated?

While most assets acquired during marriage will be considered community property, there are some exceptions. Some of your assets may instead be categorized as separate property, meaning they will not be subject to division in the divorce.

Separate property generally includes:

• Assets owned before the marriage
• Inheritances received individually
• Gifts (including those from your spouse)
• Personal injury settlements for pain and suffering

Any assets considered separate property cannot be awarded to your spouse during the divorce. But you will be required to prove that those assets should be separate property in the first place. Proving separate property in divorce requires one spouse to provide clear and convincing evidence, such as documentation, expert testimony, or detailed records. Unless both spouses agree, only after the court has reviewed the evidence can any assets be labeled as separate property. An experienced Texas divorce lawyer can help you gather the necessary proof and present your case as to why specific assets should be considered separate property.

Why You Shouldn’t Assume That Separate Finances Mean Separate Property

A common misconception is that keeping bank accounts or assets in individual names protects them from being classified as community property. This is not the case. If an asset was acquired during the marriage, it will likely be considered community property, regardless of whether it was held under your name, your spouse’s name, or both.

Get Professional Guidance From a Texas Divorce Attorney

Partnering with an experienced Texas family law firm like Goranson Bain Ausley can give you the confidence you need to move forward with the asset division process with clarity. Schedule a consultation with Megan Decadi or one of our other attorneys today to discover how we can help with asset protection during your divorce.