In a community property state like Texas, understanding how to distinguish between separate and community property is crucial. If you are about to get married, this is the time to think about how to ensure that your separate property stays that way. If you’re already married, you can evaluate what steps you may already be taking and what steps to take moving forward. Here is a guide on what to consider to protect your separate property in Texas.
What Is Considered Separate Property in Texas?
In Texas, property acquired by either spouse during the marriage is generally considered community property, which means it belongs equally to both spouses. However, there are exceptions. Separate property, as defined by Texas law, includes:
- Property owned or claimed by a spouse before marriage;
- Gifts or inheritances received by one spouse during the marriage, if kept separate;
- Personal injury damages awarded to one spouse, except for lost wages; and
- Property designated as separate in a valid premarital or postmarital agreement.
How Do I Keep My Separate Property Separate?
- Clear Documentation
The key to preserving separate property status is documentation. Be sure to keep records that clearly show that you owned the asset prior to marriage or show that the property was acquired through inheritance, gift, or personal injury award during the marriage. Make sure to keep separate bank accounts and titles for assets you want to classify as separate property.
- Avoid Commingling Assets
To prevent confusion over whether an asset is separate or community property, avoid commingling funds. What is commingling? Commingling is a fancy way of saying mixing. To avoid commingling, deposit your inheritance or gift funds into a separate account that is solely in your name, and do not use these funds for joint expenses or investments.
- Keep Detailed Records
Make sure to keep records of financial transactions involving separate property. This includes bank statements, property deeds, bills of sale, and any other relevant documents that show the origin or history of the asset. This documentation will serve as evidence if there is a dispute.
- Consider a Premarital or Postmarital Agreement
For added protection, if you are not married, consider entering into a premarital agreement that clearly outlines which assets are separate property and how they should be treated in the event of divorce. If you are already married, consider entering into a postmarital agreement that outlines the same. These agreements can provide peace of mind and clarity during legal proceedings.
- Consult with a Knowledgeable Family Law Attorney
Navigating the complexities of property division in Texas requires legal expertise. Make sure to consult with a qualified family law attorney who specializes in Texas law to ensure your assets are protected. An attorney can provide guidance tailored to your specific circumstances and help you navigate any challenges that may arise.