Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN

Characterizing and Tracing Property in Texas Divorces in Texas

ATTORNEYS IN DALLAS

Characterization of assets involved the application of marital property law, presumptions, and tracing separate and community property from comingled assets.

Characterizing and Tracing Property in Texas Divorces

Deciding to terminate a marriage doesn't just have emotional implications; it can also have significant financial implications. In a lot of divorces, the biggest issue is determining who has the legal right to claim certain assets as separate, and parties may enlist specialists to assess the nature of any property obtained during or before the marriage. For this reason, it's essential for anyone considering divorce to engage an attorney who can assist them in obtaining a precise evaluation of any property owned by them or their spouse.

Is it Community Property or Separate Property?

In divorces that occur in Texas, any property possessed by the parties is classified as either community or separate. Separate property pertains exclusively to one spouse, while community property belongs to both. During a divorce, the separate property will remain the sole property of one spouse, whereas the courts will distribute the community property in a just and fair manner. Therefore, it is vital to correctly classify all property.

As per the Texas Family Code, community property encompasses any property that either spouse acquires during the marriage, excluding separate property. Separate property, on the other hand, comprises anything that either spouse owned before the marriage, as well as any assets acquired during the marriage via inheritance, gift, or devise. Damages received for personal injuries that do not constitute compensation for lost earning capacity are also considered separate property. Furthermore, parties can define property as separate by way of a prenuptial or post-nuptial agreement.

The Most Common Reasons For Tracing Assets:
- Determining the separate character of funds or assets held on account during marriage.

- Determining the separate character of an asset acquired during marriage from separate funds or assets.

- Proving an economic contribution claim by demonstrating the use of funds or assets of one marital estate to benefit or enhance another marital estate

- Defeating an economic contribution claim from one marital estate to another by proving the benefit or enhancement was paid by the estate receiving the benefit.

Disputing the Character of the Property

In cases where the parties disagree on the nature of a particular property, it may be necessary to trace the title of the asset. In essence, tracing involves demonstrating how and when either party acquired possession of the property, to establish its separate character. This process typically involves following the paper trail from the time of acquisition to the date of divorce, to prove that the property was separate, based on the date the title was obtained and the source of the funds used to obtain it.

It's important to note that the separate character of property remains unchanged regardless of any sales, exchanges, mutations, or alterations in the form of the property. Consequently, tracing is often used to demonstrate that an asset retained its separate character despite changes over time. However, if a party combines community property with a separate asset, it can complicate the tracing process. If there is any uncertainty regarding the character of a property after tracing, it will likely be considered a community asset.

Speak with an Experienced Divorce Attorney

It is typical for married couples to own assets jointly, which can create difficulties when it comes to categorizing and tracing property during a divorce in Texas. The attorneys at Wilson Whitaker Rynell are equipped to advise you of your rights and help you protect your property. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.

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By Leigh Whitaker January 28, 2025
Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. 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While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. Additionally, women who sacrificed their careers to support their spouses or raise children may feel disadvantaged during the division of assets if their earning potential is limited compared to their ex-spouse. How Your Divorce Attorney Will Support You Each divorce case is unique, and having an experienced attorney standing by you is vital. Whether you’re dividing assets, negotiating child custody, or managing other complex legal issues, the female divorce attorneys at Wilson Whitaker Rynell are here to protect the interests of you and your family. Our attorneys will take the time to understand your unique circumstances and empower you to make informed decisions that support your career, family and future. When you choose a female divorce attorney from Wilson Whitaker Rynell, you can trust that they will: Prioritize your family’s best interests. Negotiate with integrity, ensuring fairness and transparency. Clearly explain all your options and their potential outcomes. 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