In divorce cases, the division of assets is often a challenging aspect, particularly when it comes to distinguishing whether an asset belongs to one spouse or both. In Texas, as a community property state, assets acquired during marriage are generally considered joint property. However, when separate and community assets are mixed, it can be complex to allocate them appropriately. For instance, couples may have shared bank or investment accounts containing funds earned before and after marriage. If you are planning to end your marriage and require assistance in dividing these assets, our team can assist you in protecting your right to an equitable share of the community property involved in your case.
Bank and investment accounts can be owned jointly or separately by either spouse. However, the account holder's name is insignificant in determining whether the account is separate or community property. Instead, the source and timing of the funds determine the character of money in an account. Generally, income earned during the marriage and deposited into an account is community property, unless otherwise specified.
When an account solely contains earned income, establishing it as community property is usually straightforward. However, identifying the character of funds in an account can become challenging when separate property is mixed with community property. For instance, if one spouse created an account before the marriage, the money in the account at the time of the marriage would be separate property. However, any funds added after the marriage could be community property, and any interest gained on the separate property during the marriage may also be community property.
In instances where a divorce is amicable, the parties may opt to close any joint bank or investment accounts and distribute the assets as they mutually agree before the divorce is finalized. While this may appear to be a fair approach, it may result in one party receiving less than an equitable share of the assets. If the parties possess investment accounts that are subject to division in the divorce, they must assess any tax implications related to the division of these accounts. To ensure that a bank or investment account is correctly evaluated and fairly divided, it is crucial to obtain all documentation regarding any funds deposited or withdrawn from any account during the marriage, along with documentation of any fluctuation in the account's value.
In situations where a divorce is contentious or a significant amount of money is involved, obtaining a Temporary Restraining Order (TRO) may be necessary to prevent your estranged spouse from dissipating assets. A TRO halts any activity on the account, preventing either party from closing it or removing funds to deprive their partner of a fair share of the assets. You can petition for a TRO when you file for divorce or anytime before the divorce is finalized. Typically, a judge can grant a TRO without a hearing, and it remains valid for about two weeks, after which a hearing is scheduled. During the hearing, the judge decides whether to grant an injunction that further prohibits either party from transferring any assets until the divorce is concluded.
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At Wilson Whitaker Rynell, we possess extensive knowledge of Texas laws related to the division of assets in marriage and are committed to assisting you in obtaining a just portion of any community property, including real estate and business assets. 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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