Is Texas a Community Property State?

April 14, 2025

The short answer to this question is, yes, Texas is one of the nine community property states in the U.S. but what exactly does that mean and how could it affect you in the case of a divorce or death?

And what are the steps you can take to help you reach the best outcome in a potential property division? Let’s look at some of the biggest questions BCS Law clients have about this complex topic.

Understanding Texas Community Property Law

Community Property in Texas means that any property acquired during a marriage can be considered owned equally by both spouses. It is different from separate property, which, in most cases, is acquired before a marriage or after a divorce.

The distinction between separate vs. community property matters most in the case of a divorce, when property will be divided between spouses, or a death, when property will be divided between a surviving spouse and heirs.

What is Considered Community Property in Texas?

Most of the property received during the marriage is community property, or marital property. Income, houses, vehicles, art, and appliances all fall into this category if they were earned or purchased during the marriage. Even if only one spouse’s name is on the title, deed, or mortgage, both have 50/50 ownership if it was obtained during the marriage. Even income going into separate bank accounts is still community income.

What is Considered Separate Property in Texas?

If it wasn’t acquired during the span of the marriage, it most likely falls into the category of separate property. For example, if one spouse solely owned a house before marriage, that house would be their separate property and not up for division after a divorce.

But some things can still be considered separate property no matter when they were obtained. Personal injury settlements, inheritances, and gifts designated to one spouse only all count as separate property and are not up for division during Texas divorce proceedings.

One tricky element to all of this is that any income earned from separate property during the marriage is considered community property.

Property Division in Divorce in Texas

This is where things can get complicated. Under Texas divorce laws, the Texas court divides property in a way deemed “just and right” instead of equally. This method takes into consideration any fault of the marriage breakup, the spouses’ education levels and earning potentials, disproportionate value of separate property, and the custody and needs of any children. But this still only applies to community property. The court cannot award one spouse’s separate property to the other person.

The court starts at a presumption of 50/50 ownership of all community property and then works from there to determine what is fair and equitable. But some things can’t be split 50/50, like physical property- a house or a car. So, a house could be awarded to one spouse, while a car could be awarded to the other.

Another complicated example is retirement benefits. If a spouse already had a retirement account before the marriage, and then community funds contributed to the account during the marriage, the account would be assessed for the value at the date of the marriage and at the date of the divorce and the difference would be the community property and subject to being divided.

 

How Texas Divorce Laws Handle Debt Division

Debt is evaluated in the same way as property in this case. Debt acquired during the marriage is considered community debt and split between spouses the same as property.

An unsecured debt, like a credit card, would be assessed much like the retirement benefits addressed above. It all depends on when the debts were accrued- before and after, or during a marriage.

A secured debt, meaning it is attached to an asset, like a house mortgage, would be divided with the asset. In other words, the spouse who receives the house also takes on the mortgage debt.

Some debts, like student loans, are considered separate debts and not eligible to be given to the other spouse in a divorce.

How to Protect Your Assets in a Divorce

The burden of proof is on each spouse to prove what their separate properties are for divorce proceedings. You’ll want to provide tangible proof to support your claim. This documentation can be in the form of receipts, a testimony from an executor, or a will.

It’s also important not to commingle your separate property with community property. For example, if you put an inheritance into a joint bank account, it could be difficult to determine how to rightly divide the separate money from the marital funds. The court can then view the inheritance as community property after it is joined together.

Talk to Family Law and Estate Planning attorneys about the best way to protect your assets before receiving an inheritance. If you do end up commingling properties, you’ll need to talk to a CPA or Forensic Accountant to try to trace the separate monies.

Don’t pay off debts or make any big purchases before the divorce is finalized. This could hurt you since that would all be considered community property, even if you are separated.

Prepare to negotiate. What community assets are a priority for you? What community assets would you be willing to give up?

Death And Property Division in Texas

When a spouse unfortunately passes away, the division of property gets even more complicated. Working off the legal presumption that all of the martial property is only half owned by each spouse, unless anything is rebutted, leaves the division between the surviving spouse and any established heirs. Both parties may be in for a bit of a surprise to learn that they may not be awarded all the property they thought they’d receive. The estate will go into probate until it is all settled.

Closing Thoughts

Each married couple’s circumstances will present their own nuances and challenges when it comes to the division of community property during divorce. This guide is only meant to give you a foundational understanding of what to expect during the process, not offer legal advice. To realize the full scope of your potential case you need an experienced attorney.

Need help navigating Texas community property laws? Contact the experienced attorneys at Bollier Ciccone Stinson LLP for a consultation. The BCS Family Law practice is led by veteran Board-Certified Family Law attorneys Leslie Bollier and Susannah Stinson, who are recognized by the Texas Board of Legal Specialization. The BCS Law team will explain your options, formulate a strategic plan based on your desired outcome, and work tirelessly and productively to realize your optimized result.