As they live in a community property state, divorcing Texans will find that all debt and assets gained during their marriage will be divided equally between them. In some cases, debt incurred by one party will remain solely their responsibility. Find out how debts and assets are divided by a judge.
What is community property and debt?
Community property is everything, assets and debt, that was acquired during a marriage prior to divorce proceedings. This can include real estate property, cars, businesses, retirement accounts and any other items earned or purchased while spouses were married. It also includes any debt incurred, regardless of which spouse was responsible.
What is separate property and debt?
Separate property is anything listed above that one spouse earned or purchased prior to entering into the marriage. Likewise, separate debt is debt incurred prior to the marriage. However, certain items like valuable gifts or large inheritances also fall under separate property even if they were acquired during the marriage. Likely, during a divorce, a judge will assign these assets to the spouse who received them.
How will property and debt be divided in Texas divorce?
Dividing property and debt can be tricky, and the first step is to list all assets and debts. Texas law states that property must be divided equally, but this does not always mean it is divided 50/50. In the event that spouses reach an accord, a judge will usually sign the divorce decree allowing this agreement. However, if no agreement can be reached, it is up to the courts to decide.
Debt and divorce
It is important to remember that your credit can be affected by not paying debt off. If your ex-spouse does not pay their share of the debt, even if the judge orders them to, your credit score can be hurt. Always try to make timely payments to your creditors.