Editor’s note: As real estate professionals, we hear these questions and misconceptions daily.
The answer to every question is: Talk to your lawyer! – Norma Wall, Broker
Community property is the legal concept that assets and debts acquired by either party during a marriage or domestic partnership are owned equally. This includes your home. When the union is dissolved, the distribution of property is governed by this concept.
Texas is One of Nine Community Property States in the US.
Texas is a community property jurisdiction. Under this concept, each spouse has an undivided one-half interest in the community property. This can include income earned by either spouse and property purchased or assets accumulated during the union.
This often excludes property obtained before the marriage, gifts or inheritances received by one spouse individually, and any property explicitly designated as separate property through a legal agreement.
In the event of divorce, legal separation, or the death of a spouse, community property is usually divided
equally between the spouses.
However, the court may consider factors such as the length of the marriage, earning capacity, and each spouse’s contribution to the acquisition and maintenance of the property.
Common Questions
Editors note: As real estate professionals we hear these questions and misconceptions on the daily. The answer to every question is: Talk to your lawyer! A good place to start is with the Texas State Law Library. – Norma Wall, Broker
Q. If I buy a property during marriage with the title only in my name and the mortgage only in my name, does that exclude this from community property?
A. It isn’t required that both spouses’ names be on the property title or mortgage. Property acquired during marriage is still considered to be owned by both parties, even if only one name is on the asset.
It’s important to note that these laws can vary between different states. It’s advisable to consult the specific laws of Texas and seek legal advice.
An excellent place to start is the Texas State Law Library.
When it’s time to talk to a Realtor® – call one of us!
- The other eight states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Washington and Wisconsin.
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