People preparing for divorce can face either equitable distribution statutes or community property rules. Depending on where a spouse files for divorce, substantially different rules may apply to the financial aspects of the divorce.
Texas is one of a handful of states that still embrace the community property approach to asset distribution. Some people fear filing for divorce because they do not understand the true implications of community property rules. They may have heard that they have to split everything they own in half with their spouse. Is an even split the only potential outcome of property division in a Texas divorce?
Judges can enter nuanced property division orders
The community property statute in Texas treats anything earned or acquired during the marriage as community or marital property. Judges settling property division matters typically begin with the presumption that an even split is the appropriate solution.
However, either spouse can present evidence to the courts to convince a judge that they need to deviate from that standard. A judge can award more property or debts to one spouse if doing so results in a fair outcome.
Factors ranging from health concerns to uneven contributions to the marital estate can influence what a judge believes is fair. A 50/50 split is typically only the starting point of property divisions proceedings, not necessarily the outcome. Even if judges stay close to an even split, they do not have to divide every asset or debt so long as the overall outcome is reasonable and fair.
Spouses can always set their own terms
Another option that people frequently overlook is the possibility of pursuing an uncontested divorce. Spouses always have the option of setting their own terms during divorce proceedings. They could use the guidelines established in a prenuptial agreement to split their property, or they might negotiate with one another to settle property division matters amicably.
A 50/50 split can work in some cases, but an even division of assets and debts is not mandatory in a Texas divorce. Learning about the rules that apply during divorce proceedings can help people assert themselves and plan for the future during a difficult time in their lives.