Asset division can often become fairly contentious in a Texas divorce. Texas follows a community property division system, which means that everything the couple owns is split 50/50, regardless of the circumstances of the divorce.

However, many couples have property that go beyond just the financial value, but instead hold significant sentimental value, such as a piece of art or jewelry. How do the courts address these types of asset division issues and how can you and your spouse avoid a drawn-out fight over who gets to retain the item?

Item Details

The little details about the item can make a difference. For example, the date, or approximate date, of acquisition can often decide who actually has ownership of the item. If you or your spouse acquired the item before your marriage, it is your (or their) property, with no obligation to share or commingle.

Although they are more common today than they were a decade or so ago, many couples still do not believe they need a prenuptial agreement before they get married. While one of the main reasons for this is that the couple may believe that they will never divorce so they do not need one, others believe that only wealthy people need prenups.

The truth is that no matter how in love you are today, almost half of marriages today end in divorce. The other truth is that you do not have to be rich to benefit from a prenup should you find yourself needing the help of a Texas divorce attorney. The following are some questions that usually indicate that a couple should seriously consider drafting a prenuptial agreement before saying, “I do.”

Do You Have Assets?

As one might imagine, couples with significant assets individually or between them will benefit from a prenuptial agreement in multiple ways. However, even if those assets are not significant, you will still want to make sure they are protected from Texas community property divorce laws.

When you are in the process of divorcing your spouse, the temptation can be overwhelming to not be entirely truthful in disclosing all of your assets. You may feel that he or she does not deserve them, or that you are more morally entitled to retain the entirety of a bank account or pension fund. Do not give into this temptation; the penalties for hiding assets far outweigh any possible chance you might succeed in your endeavor.

Is It Common?

One might wonder how many people actually go so far as to hide assets. Research has shown that two in five Americans admit to some sort of untruthfulness with their partner about financial matters, whether it was outright lying or hiding, or simply softening the truth. More men than women historically hide assets, but of course, any spouse may be tempted, especially if they are the primary breadwinner.

There are specific rules governing financial discovery that must be complied with. For example, if you receive a gift of $500, that money is your own asset, but if you deposit the money in a joint bank account you share with you spouse, it now becomes an asset of the marital estate and is subject to Texas community property divorce laws.

Divorce brings about many changes to a person’s life. Not only are there many emotional changes to adjust to, but divorce can also bring financial changes that need to be dealt with, too. It can be especially difficult if one spouse was the primary breadwinner, and the other spouse was in charge of maintaining the house. Suddenly, the spouse who did not work outside of the home has absolutely no income coming in.

Situations like this are one reason why it is an excellent idea for couples to have a prenuptial agreement in place before they marry. In fact, even if you are already married, it is not too late. Many couples still choose to have a postnuptial agreement drawn up. Alimony is one of the many issues that can be addressed in a prenuptial agreement and can make the transition from married life to single life a little easier financially.

If you do not have a prenuptial agreement in place, then your divorce attorney can include an alimony request as part of your divorce settlement.

It is not uncommon in a divorce to experience credit issues or other financial problems. However, many people wind up ambushed by the true scope of these issues and find themselves struggling with serious financial difficulties. If you are getting ready to file for divorce, the following information can be useful. For more detailed information regarding your particular circumstances, as well as other divorce questions, one of our skilled Collin County divorce attorneys can help.

Take Steps Before You File

Whenever possible, it is in your best interest to ensure your finances remain stable even before you file your petition to divorce. If you and your spouse are on friendly terms despite the decision to divorce, try working together to minimize or eliminate as many marital debts as you can. This can include closing or freezing any joint accounts you may have. Paying off as much debt as you can before the marriage ends will go a long way in providing you with solid financial footing as you begin your post-divorce life.  

Another step you should take is opening up a new credit card just in your name. Do not use the card for large purchases. Instead, use it to make small purchases and pay them in full immediately. This helps build up your credit in your name only, as well as provide you with financial lifeline if the relationship with your spouse is an acrimonious one.