Texas residents may agree that divorce not only breaks hearts but also has financial implications. A divorce involves issues, such as spousal support, asset and debt division and child support, if there are children involved.
In a community property region, such as Texas, property that is owned by the couple is considered joint property. Similarly, any debt that is incurred during a marriage is also considered marital debt. That means that both spouses are responsible for the debt after divorce. Just as assets are split between the couple, so is debt.
The creditor of the debt is a third party and is not involved in any divorce decree. Hence, the creditor can go after either spouse to collect the debt as it is assumed that the creditor is not aware of who is responsible for payment of community debt in a divorce. If the Texas court allocates debt payments to one particular spouse who does not pay, the other spouse may sue the person in court.
In Texas, separate property also exists. That property was acquired before the marriage. Even after marriage, any property that a spouse acquires as a gift or as an inheritance is considered separate. The married couple may create a written agreement outlining how to split community property. In such a case, that partitioned property becomes the individual’s separate property.
In a divorce decree, the Texas court will divide property in a way that is fair and just. It will consider the rights of each spouse and also take into account the number of children in the family. The court may also consider separate estates of an individual and also the fault of a person in a divorce.
Source: TYLA.org, “What to Expect in Texas Family Law Court,” Accessed on June 10, 2015