Getting a divorce means the couple will have to come to an agreement their marital assets, and if they fail to, a judge will decide. One of the biggest assets a couple owns is the marital home. If you are a Texas resident, here are a few things to know about family law as it pertains to divorce.
Asset division is part of a divorce settlement. However, the proceeds from the sale of the house are distributed according to when you purchased the home and the state you reside in.
Family law guidelines by the state you live in apply if your divorce case ends up in court. If you and your soon-to-be-ex can negotiate a settlement without going to court, you can work together to come up with an ideal solution.
Marital property and separate property
According to family law, marital property is generally classified as anything you and your spouse earned or acquired while you were married. This can include the home you purchased together, along with automobiles and wages.
Separate property, on the other hand, is any property that only belongs to one spouse. The house cold be considered separate property depending on whether you live in a community property state or an equitable distribution state.
Community property states and equitable distribution states
If you live in a community property state, which Texas is, nearly all the assets you acquired are split 50/50. This includes your income, as well as your debts. Property you owned before getting married is often an exception.
In an equitable distribution state, all your marital assets are fairly divided although the division is not necessarily equal. The judge will determine who gets what based on several factors including earning potential, income, and financial contributions.