Dividing property in a Texas divorce creates challenges, especially when inheritance plays a role. Texas follows community property laws, meaning both spouses own most assets acquired during marriage. This means that complications can arise depending on how spouses handle inherited assets.
Is inheritance considered community or separate property?
In Texas, inheritance qualifies as separate property. If you inherit money, a home, or other assets, they belong solely to you, not your spouse. Even if you receive the inheritance during marriage, it stays separate unless mixed with joint assets.
What happens if inheritance is commingled?
Commingling occurs when separate property mixes with community property, making ownership difficult to determine. For example, depositing inherited funds into a joint bank account and using them for household expenses may convert them into community property. Keeping inherited assets in a separate account and maintaining clear records helps protect their status as separate property.
Can inheritance be divided in a divorce?
If an inheritance remains separate, the court does not divide it in a divorce. However, if commingling occurs, the court may classify it as community property. The spouse claiming the inheritance as separate must prove its status. Proper documentation, such as wills, estate records, or bank statements, helps establish that the inheritance was not shared or used jointly.
Protecting an inheritance from division
To keep an inheritance separate, store funds in a personal account and avoid shared use. A prenuptial or postnuptial agreement can also clarify inheritance rights. If you expect an inheritance, documenting and maintaining it separately prevents disputes during a divorce.
