What is community property, and how does it differ from separate property?
Texas is a community property state. This means that all property and income obtained during the marriage (whether by the husband, the wife, or both) belongs jointly to the husband and the wife. By law, community property must be divided in a “just and right” manner, and not necessarily 50/50, at the time of divorce. In some circumstances, an unequal division of community property is found to be “just and right.” For example, a spouse whose earning capacity is significantly greater, and who is at fault in the break-up of the marriage, might receive less community property in the divorce. By contrast, separate property is not divided with one’s spouse at the time of divorce. Under Texas law, separate property includes: property owned prior to the marriage, gifts to the individual, the individual’s inheritance, and certain parts of personal injury settlements. Property purchased with separate property during the marriage remains separate property if it can be properly “traced.
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