Friday, February 27, 2009

WHAT IS COMMUNITY PROPERTY?

In Texas, there is a presumption that all property accumulated during a marriage is community property. However, there are some assets the law classifies as separate property:


Separate Property

Property owned before you are married is your separate property. For example, if you owned your house before you were married, and you and your spouse lived together during the marriage in this house, the house is typically considered your separate property.

Another form of separate property is an inheritance you received before or during your marriage. Therefore, if you inherited a valuable piece of jewelry, a home, or a substantial amount of money, these possessions are separate property. Other assets that are separate property include gifts you received before or during your marriage, and certain parts of personal injury settlements.

Bear in mind that the person who owns the separate property must prove the property is separate by direct "tracing" using documents like statements, checks, deeds, or other legal instruments.


Community Property

It is important to note that income such as interest, earnings, or dividends made from separate property is community property. Additionally, retirement funds accumulated after marriage, and all earnings made during the marriage is community property.


(c) 2009 Rachell Miller, JD