Equitable Distribution

When it comes to dividing marital property, courts in the United States all follow one of two schools of thought: 1) community property, or 2) equitable distribution. Texas is a community property state, which normally means that everything acquired during a marriage is divided equally upon divorce. However, unlike other community property jurisdictions, Texas applies these rules with an equitable distribution in mind.

Community Property vs. Equitable Distribution

Community property and equitable distribution are essentially two sets of rules that are used to divide marital property in the United States. Most jurisdictions follow equitable distribution guidelines. Texas, however, is one of the nine states that have chosen community property.

In a community property jurisdiction, anything acquired after marriage belongs to both spouses equally—regardless of whose name is on the paycheck, deed, loan, or lottery ticket. This jointly owned property is called "community property" or "marital property," and must be divided between spouses equally upon divorce. On the other hand, anything you acquired before marriage is called "separate property" and gets to leave with its respective owner upon divorce. Gifts, inheritances, and awards from a personal injury lawsuit are also considered separate, regardless of when they were received.

The biggest difference between an equitable distribution state and community property is that in an E.D. jurisdiction, courts are much less concerned about making a fifty-fifty division, as they are about making the split fair. Equitable distribution allows courts to take intrinsic, non-monetary factors into the equation when dividing marital property, such as the amount of education each spouse has or their income levels.

Equitable Distribution in Texas

While Texas follows community property rules, judges are allowed to consider what is "equitable" in applying those rules. The Texas Family Code even requires it, stating that courts are to make "an equitable distribution of community property." In this context, "equitable" does not mean "equal"—it means "fair," meaning that Texas courts can make an uneven split of marital property if that's what it takes to make things fair.

Factors That Can Influence a Marital Property Division

When it comes to making an equitable split, some of the factors that courts can consider include: the education level of each spouse; the income level of each spouse; the income gap between spouses; any business or employment opportunities; the separate property of each spouse; the condition of each spouse's personal finances; the age and health of each spouse; the length of the marriage; the custody arrangement of minor children; the need for alimony; any wasteful financial practices of either party while married; any fault that might have contributed to the breakup; and any tax consequences as a result of divorce.

How Fault Can Impact Equitable Distribution

In a "fault-based" divorce, a judge can take a person's guilt into consideration and assign financial repercussions accordingly. Of Texas's seven grounds for divorce, five are fault-driven, and include: Cruelty, Adultery, Felony Conviction, and Abandonment. If your spouse is guilty of any of these things, then you may want to talk to your family law attorney about whether fault divorce is right for you.

Property Division Attorneys in Texas

Whether you've only been married for a short time, are engaged in a high net divorce, or simply want to draft a prenuptial agreement to protect your future interests, an experienced family law attorney is critical to ensuring your interests are properly protected during a marital property dispute. If you have more questions about Texas's community property laws and how they're similar to the rules of equitable distribution, we want to hear from you. Call North Texas Family Lawyers today at (972) 436-8000, or schedule a consultation online, and together, we can make sure you get the property split you deserve.