Separate property encompasses those assets which, during a divorce, are legally recognized as belonging solely to one spouse. Unlike community property, which is distributed between spouses based on what the court deems fair and equitable, separate property is not subject to division and remains with the original owner. In Texas, the default assumption is that all property acquired during the marriage is community property, unless proven otherwise.
Defining Separate Property
For an asset to be classified as separate property, the owning spouse must convincingly prove its status under one of these conditions:
- The asset was in their possession before the marriage;
- The asset was received as a gift;
- The asset came as an inheritance;
- The asset constitutes compensation from a personal injury claim.
Examples of Separate Property Claims
Pre-Marital Ownership Property owned prior to marriage, including but not limited to real estate, vehicles, personal items, or financial investments, is categorized as separate property. Such assets must be awarded to the original owner by the court.
Gifts Texas legislation defines a gift as anything given freely without the expectation of something in return. Items like engagement rings, given voluntarily and without the promise of compensation, are typically classified as separate property.
Inheritance Assets acquired either through a will (devise) or family inheritance (descent) are protected as separate property. For instance, if a spouse inherits money and allocates a portion to a joint asset, such as home renovation, the balance remains separate property, mandating the court to recognize it as such.
Personal Injury Compensation In Texas, compensation awarded for personal injuries is generally considered separate property, with the notable exception of lost wages compensation. Since earnings obtained during the marriage are community property, any compensation for lost earning potential due to injury also shares this classification.
These scenarios underscore the various bases under which property can be deemed separate in Texas divorces. For further details and comprehensive guidance on navigating property division in divorce, we invite you to download our guide to Texas Marital Property. This resource offers valuable insights into how assets, including homes and businesses, may be affected in divorce proceedings.