When going through divorce, you will enter the asset-dividing process at some point. In this, you will divide your marital assets up with your spouse based on what is equitable or equal.
To understand what assets are potentially up for division, it is important to know the categorization of assets.
Separate vs. community property
The Texas State Law Library discusses the categorization of marital assets. Assets generally divide into two categories: separate and community.
Separate property typically does not get divided in divorce. These properties include things that belonged to a person before the marriage, inheritances they received, and gifts given directly to them.
On the other hand, community property usually does get divided. This can include things like cars, houses, land parcels and more.
Typically, anything with both of your names on it counts as shared or community property even if only one of you paid for it. Anything purchased with a joint bank account can fall into this category, too.
Changing property categories
Also of note: some separate assets may actually become joint assets through the course of the marriage. For example, if a person receives an inheritance lump sum of cash and then deposits that in their shared bank account, it becomes community property.
Understanding how assets end up divided and shared during marriage helps out a lot in the event of divorce. Of course, prenuptial agreements can also accomplish the same goal, which is why it is so highly recommended. But even without one, it is possible to figure out how to divide assets easily.
