Understanding Commingled Property

If you’re facing a divorce in Texas, you’ve likely discovered that there’s something called “commingled property.” In fact, Texas is one of only a few states that recognize two forms of property held by spouses. It’s important that you understand those two distinct forms of property if you’re in the midst of a divorce in Texas.

Commingled property vs. community property vs. separate property

Texas recognizes two distinct forms of property. The first characterization of property is separate property. Separate property is all property that each spouse owned individually prior to the marriage. Separate property also includes any property that the spouse might have acquired during the marriage by gift, demise or decent.

For instance, a car that a spouse owned prior to the marriage would be considered separate property. Another example would be an inheritance bequeathed to a spouse during the marriage. 

All other property accumulated throughout the marriage is considered community property. However, when community property is mixed in with separate property throughout a marriage, it is then considered commingled property.

How is property divided in a Texas divorce?

In a Texas divorce, the courts will divide the property so that each spouse retains all of his or her separate property. The courts will also divide the community property in a “just and right” manner. 

Typically, assets are split 50/50 between spouses. However, this baseline will likely be adjusted according to the specific and unique circumstances of your case. There are a number of factors the courts may consider to determine a just and right division of property, for example:

• Who made the majority of the mortgage payments on a property

• Who was the predominant caregiver for the children

• Who has greater income-earning potential 

Commingled property is an issue that arises quite often. And it does add some complexity to the division of assets. Typically, the courts approach the situation with the assumption that all property is community property of the marital estate. However, you can overcome this presumption with tracing doctrine.

How to ensure your property is divided in a just and right manner during your divorce

Working with an experienced Texas Family Law attorney will help to ensure that your property and assets are divided in a way that is satisfying for you. As experienced Texas Family Law attorneys, we are well versed in tracing, and we can help guide you through the division of your assets.