Know what Marital Property is Community or Separate in a Texas Divorce
In Texas, Community Property Laws apply in determining the Property Distributions to a wife and husband. This system is employed to divide the property fairly between the divorcing couple.
What is Separate Property? Texas Family Law Code, FAM 3.001: A spouse’s separate property consists of:
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The property owned or claimed by the spouse before marriage
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The property acquired by the spouse during marriage by gift, devise, or descent
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The recovery for personal injuries sustained by spouse during marriage, except any recovery for loss of earning capacity during marriage.
The terms “owned and claimed” as used in the Texas Family Code means that where the right to the property accrued before marriage the property would be separate. Inception of title occurs when a party first has a right of claim to the property by virtue of which title is finally vested. The existence or nonexistence of the marriage at the time of incipiency of the right of which title finally vests determines whether property is community or separate. Inception of title occurs when a party first has a right of claim to the property.
Under Texas Constitution, Art. XVI, Section 15, separate property is defined as all property, both real and personal, of a spouse owned or claimed before marriage, and that acquired afterward by gift, devise or descent, shall be the separate property of that spouse; and laws shall be passed more clearly defining the rights of the spouses, in relation to separate and community property; provided that persons about to marry and spouses, without the intention to defraud pre-existing creditors, may by written instrument from time to time partition between themselves all or part of their property, then existing or to be acquired, or exchange between themselves the community interest of one spouse or future spouse in any property for the community interest of the other spouse or future spouse in other community property then existing or to be acquired, whereupon the portion or interest set aside to each spouse shall be and constitute a part of the separate property and estate of such spouse or future spouse; spouses may also from time to time, by written instrument, agree between themselves that the income or property from all or part of the separate property then owned or which thereafter might be acquired by only one of them, shall be the separate property of that spouse; if one spouse makes a gift of property to the other that gift is presumed to include all income or property which might arise from that gift of property; and spouses may agree in writing that all or part of the separate property owned by either or both of them shall be the spouses’ community property.
What Is Community Property? Texas Family Law Code, FAM 3.002: Community property consists of the property, other than separate property, acquired by either spouse during the marriage.
Texas Family Code, Section 3.003 states that all property possessed by either spouse during or at the dissolution of the marriage is presumed to be community property and that the degree of proof necessary to establish that property is separate property, rather than community property, is clear and convincing evidence. Clear and convincing evidence is defined as that measure or degree of proof that will produce in the mind of the trier of fact a firm belief or conviction as to the truth of the allegations sought to be established. If property cannot be proved clearly and convincingly to be separate property, then it is deemed to be community property.
The Texas Family Code, Section 7.002, deals with quasi-community property and requires a court divide property wherever the property is situated, if 1) the property was acquired by either spouse while domiciled in another state and the property would have been community property if the spouse who acquired the property had been domiciled in Texas at the time of acquisition; or 2) property was acquired by either spouse in exchange for real or personal property and that property would have been community property if the spouse who acquired the property so exchanged had been domiciled in Texas at the time of the acquisition.
What about Property Acquired during Marriage? Property in which inception of title occurs during marriage is community property unless it is acquired in one of the following manner, in which it becomes separate property of the acquiring spouse:
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By gift
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By devise or descent
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By a partition or exchange agreement or premarital agreement specifying that the asset is separate
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As income from separate property made separate as a result of a gift, a premarital agreement or a partition and exchange agreement
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By survivorship
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In exchange for other separate property
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As recovery for personal injuries sustained by the spouse during marriage, except any recovery for loss of earning capacity during marriage.
During a divorce, it is important that both parties know what type of property is involved in the divorce and what is separate and community property. This knowledge may determine or influence what each party will receive at the end of the settlement.
When the Custodial Parent Dies – Who Will Have Custody of the Child?
When the custodial parent of a child dies, in the state of Texas, not only is the child and family union devastated, but now is presented the difficult issue of who will become the child’s guardian. The possible candidates who may be legal guardians?
- Non- Custodial parent, if paternity is acknowledged
- Grandparents
- Other relatives
- Godparents, Family friends, Neighbors
- State Foster System
Usually, the surviving non-custodial parent will have an automatic right to custody of the child. Texas law favors a child having a solid relationship with both parents and in the event of death, the living parent will take over permanent exclusive custody of the child. What factors should be considered in the child’s best interest that could determine custody by the surviving parent if he/she is not appropriate for the child?
- Did the court, after the divorce, terminate your parental right in a legal proceeding? If the non- custodial parent had legally been terminated of his/her parental rights this is binding and the terminated parent WOULD NOT be granted permanent custody of the child.
- What if the custodial parent remarried and the new stepparent legally adopted the child? If the child was legally adopted by the stepparent and the non-custodial parent had waived their parental rights, the stepparent would be granted permanent custody of the child.
- What if the non-custodial parent has acknowledged parentage, but paternity has not been establish? To be entitled to custody of the child, the father would first claim parental rights through paternity testing to determine if he is the biological father of the child or if he has signed the child’s birth certificate. After Paternity is established, a separate legal proceeding may need to be initiated to override the terms of the mother’s will.
- What if the Custodial Parent created a will that stated the grandparents/godparents would take over as the legal Guardians of the child in the event of death? Many parents will request a particular person or group, such as grandparents, relatives, or godparents to become guardians for their minor children in the case of their demise, but a child is not a piece of property to give away to others when the other biological parent is living. The judge will view what is in the best interest of the child and will always first look at the surviving parent. If this parent meets basic standards the child will live with this parent. If the surviving parent cannot serve the child’s best interest, then the judge will consider the guardian designated in the deceased parent will.
Nacol Law Firm P.C.
tel: (972) 690-3333
Texas Child Support : Gender Neutral Pro Rata Child Support Obligations
One of the most frequent inquiries we receive at The Nacol Law Firm is whether child support obligations are equally applied between Mothers and Fathers. When a parent is considering a divorce or a union break up with the child’s other parent, who pays for child support and medical/dental insurance for the child, for how long and according to what guidelines?
The State of Texas (Texas Family Code Ch 154) Sec. 154.001. SUPPORT OF CHILD. (a) The court may order “Either” or “Both” parents to support a child in the manner specified by the order: (1) until the child is 18 years of age or until graduation from high school, whichever occurs later; (2) until the child is emancipated through marriage, through removal of the disabilities of minority by court order, or by other operation of law; (3) until the death of the child; or (4) if the child is disabled as defined in this chapter, for an indefinite period.
The State of Texas child support laws dictate that children are entitled to financial support from both parents. Texas establishes child support guidelines to determine how much an average child will need. The guidelines provide for a basic amount of support to the parent who receives it based on the other parent’s income and number of children to be supported. However, there may be special circumstances that justify the court’s deviation from the standard amount of child support. Extraordinary expenses can be taken into consideration, including medical expenses or high childcare costs and other specific exceptions.
The State of Texas also supports that a Father and Mother should have the relatively equal rights to the child and should share in the child’s care and support. What does that mean? If Mom or Dad each have standard access and possession 50% of the time, then the Father and Mother should pay guideline support for the care of the child. Yes, Father and Mother.
With a substantial rise of mothers paying child support in the United States, many women are reevaluating their situations, when they find out Dad will not be paying all expenses and child support and be prorated when raising the child 50% of the time. Today’s mothers are the primary breadwinners in four out of 10 U.S. families (Pew Research).
Texas statutes dictate specific Child Support guidelines and, like it or not, other than rare exceptions, neither parent can escape this obligation! Many mothers will plea that they cannot work because of their obligation to the care of the child or will under-employ to try to escape paying their rightful share of the child’s support. But in today’s world many parents either share 50/50 time with their child or father may be the primary custodial parent.
If the mother refuses to pay court-ordered child support, there may be several enforcement options. A contempt of court action can hold the mother civilly or criminally liable for not obeying the court’s mandate. If found guilty, the mother may be required to post a bond equal to the amount of child support in arrearages or may have to serve time in jail for contempt. Other actions include suspending the mother’s driver’s license or professional license, intercepting tax refunds or federal payments, denying passports, placing liens on property and reporting the debt to credit bureaus.
CHILD SUPPORT GUIDELINES BASED ON THE MONTHLY NET RESOURCES OF THE OBLIGOR:
- 1 child 20% of Obligor’s Net Resources
- 2 children 25% of Obligor’s Net Resources
- 3 children 30% of Obligor’s Net Resources
- 4 children 35% of Obligor’s Net Resources
- 5 children 40% of Obligor’s Net
- 6+ children Not less than the amount for 5 children
(3/5/2019 FAMILY CODE CHAPTER 154. CHILD SUPPORT https://statutes.capitol.texas.gov/Docs/FA/htm/FA.154.htm 20/47)
For more information on Texas Child Support Guidelines, please go to the Texas Attorney General Child Support Website at: https://csapps.oag.texas.gov/monthly-child-support-calculator
Mark Nacol
Nacol Law Firm
Dallas TX
Boomer / Senior Divorce: I Love and Respect My Spouse But…
The decision has been made to divorce. What is next? Get prepared financially! The National Association of Divorce for Women & Children recent survey states the 41% of all participants say dealing with finances, debt and security were the most challenging parts of finalizing a divorce. Asset division was second and Child Custody came in third.
Here is what you may reasonably expect in the future:
- You are not a legal couple anymore. Your retirement funds could be cut in half. The National Center of Health Statistics stats that most women see a 45% post-divorce drop in their standard of living.
- Health Insurance: one of the most serious problems facing the newly divorced boomer / senior. Many spouses are dependent on the other for health insurance and when people divorce, many times the insurance cost is much larger.
- Retirement and Social Security: when separating funds in regard to retirement assets and social security funds there should be a legal document to assure each partner is awarded the correct amount. Also if you are over 62 and have been married over 10 years, survivor benefits and special rules regarding Social Security will have to be reviewed.
- Alimony / Spousal Maintenance may be awarded after a long-term marriage. In many states the laws have changed and this monetary amount leaves many ex-spouses with much less than expected.
- Legal and financial fees may be significant in large estates but are required to make smart binding decisions in separating assets and property. “Keeping the House” may be an emotional victory, but is it a wise financial decision for you considering your new more limited life style?
You may feel like you are growing older, and are ready to go it alone, but is this the right financial decision for you?
It is sometimes feels but is not easier to say good bye and break the strings of the past. What to think about before you go:
- Your family and friends – do you have their support or will you have to go alone? Usually divorce partners will lose some friends so are you ready to develop a new group of friends with a new life style?
- Is your financial house in order and do you understand the change of life style that is possible?
But if you seek a divorce, contact a knowledgeable attorney who can help get you through this serious time in your life. Right and smart decisions are critical and will govern your life in the future.
Spousal Maintenance Laws in Texas
Texas spousal maintenance can be a useful and effective tool in a divorce. A spouse lacking sufficient property or the means to provide for his/her minimum reasonable needs, may have awarded additional funds from the other spouse during the divorce and after to help rebuild his/her life following their divorce.
In September of 2011, the Texas Legislature revised and modified the requirements for spousal maintenance including the limits on amounts and duration of time allowed.
The eligibility requirements of the Texas spousal maintenance law is still considered one of the more restrictive spousal maintenance laws in the U.S.
To be able to be awarded Spousal Maintenance (statutory term for spousal support or alimony) you must be married and the spouse seeking support must lack sufficient property to provide for the spouse’s “minimum reasonable needs”. Also one of the following is required:
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The recipient must be unable to earn sufficient income to provide for his or her minimum reasonable needs because of an incapacitating mental or physical disability.
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The marriage lasted for 10 years or longer and the recipient lacks the ability to earn sufficient income to provide for his or her minimum reasonable needs.
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The recipient is the custodian of a child of the marriage of any age who requires substantial care and personal supervision because of a physical or mental disability that prevents the spouse from earning sufficient income to provide for the spouse’s minimum reasonable needs.
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The person ordered to pay support was convicted of or received deferred jurisdiction for an act of family violence during the pendency of the suit or within two years of the date the suit was filed.
The Maximum Amount of spousal maintenance the courts may award is $5,000 per month, although it is still limited to 20 percent of the Payer’s average Gross Monthly Income.
The Maximum Duration of Time for spousal maintenance is:
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Five years if the marriage is 10 years or less and the eligibility for spousal maintenance is established by an act that constitutes family violence.
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Five years if the length of marriage is at least 10 years but no more than 20 years.
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Seven years if the marriage length was at least 20 years but no more than 30 years.
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Ten years if the marriage length lasted 30 years or longer.
In cases where the spousal maintenance is awarded due to the mental or physical disability of the spouse or a child of the marriage, the court may order the maintenance continue as long as the disability continues.
The spousal maintenance awarded by the court is discretionary and may not always eliminate the shortfall of the requesting spouse’s monthly expenses.
What about Termination of Spousal Maintenance? The obligation to pay future maintenance terminates on the death of either party or on the remarriage of the spouse receiving the maintenance.
If the court finds that the receiving spouse cohabits with another person and is in a dating or romantic relationship in a permanent place of abode on a continuing basis, the court shall order the termination of the maintenance obligation.
Termination of the maintenance obligation does not terminate the obligation to pay any maintenance that accrued before the date of termination and this amount will have to be paid or a judgment will be enforced by the court.
If you are thinking about a divorce in Texas and have questions concerning your eligibility for spousal maintenance contact a legal professional to help you through this process.
NACOL LAW FIRM P.C.
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Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization
