In Texas, when couples go through a divorce, the court’s goal is to divide marital property in a way that is fair, but not always equal. This is known as “equitable distribution.” If a prenuptial agreement exists, the terms of that agreement will typically guide how the property is divided. However, without such an agreement, Texas state law applies. One important distinction in this process is the difference between community property, which can be divided, and separate property, which cannot. In general, property acquired during the marriage is considered community property, while inheritances are treated as separate property. However, complications can arise if inherited assets are commingled with marital assets.
Recently, a Texas appellate court ruled on a case involving disputed property, including a home and a truck. The husband in the case argued that both the home and the truck should be considered his separate property because they were purchased with money he inherited from his mother. The wife, however, argued that the assets were community property since her name was also listed on the deed and title.
The facts of the case show that after the husband’s mother passed away, he inherited a large sum of money. He used this money to purchase a home and a truck, both of which were put in both his and his wife’s names. While the wife’s name was added to the titles, the husband claimed that he never intended to make these assets community property or to gift any portion to his wife. The dispute over these assets became a key issue in their divorce, ultimately leading to an appeal after the trial court sided with the husband.