Community vs. Separate Property in Texas: A Dallas Divorce Guide

The community property presumption

Every asset acquired during marriage is presumed community under Texas Family Code §3.003. The spouse claiming an asset as separate carries the burden of proof by clear and convincing evidence.

What is separate property?

Property owned or claimed before marriage; property acquired by gift, devise, or descent; and recoveries for personal injury sustained during marriage (excluding lost earning capacity). Texas Family Code §3.001.

Just and right — what it means in Dallas County

Family Code §7.001 requires a “just and right” division of community property. Dallas County judges weigh factors including relative earning capacity, education, employability, business opportunities, physical health, age, fault in the breakup, size of separate estates, and the nature of the community property.

Common tracing problems

Commingled bank accounts, refinanced homes, and stock accounts purchased with mixed funds are the most litigated tracing issues. Forensic accountants use community-out-first, minimum-balance, or Item and Identity tracing methods depending on the record.