Will I Lose Everything in My Divorce in Texas?

A fear many people bring into divorce is: “Will I lose everything?” The short answer is “NO”, you will not automatically lose all your assets or be left with nothing. But because Texas is a community property state, the division of assets and debts in a divorce can be complex, and the outcome depends on many factors. At Mokolo Law Firm, we help clients navigate these rules to protect what matters most.

In this post, we explain:

1. What community property and debt means in Texas
2. What separate property and debts are
3. Whether spouses can agree on how to divide property
4. How courts divide assets and debts
5. Important factors that may shift the division

1. What Is Community Property & Community Debt in Texas?

• Under Texas law, community property is any asset or debt acquired during the marriage, except for certain exceptions (like gifts or inheritances).
• It doesn’t matter whose name is on the title or whose income paid for it, as long as it was obtained during marriage and is not clearly separate, it’s presumed to be community property.
• Community debt is any debt incurred during the marriage, such as credit card bills, joint loans, mortgages taken out during the marriage, or obligations incurred for household expenses.
• In a divorce, community property and community debt are typically divided between spouses, although not necessarily equally. The division must be “just and right” under Texas law.

2. What Is Separate Property & Separate Debts?

• Separate property includes assets owned by one spouse before marriage, or property received individually during the marriage via gift or inheritance (from someone other than the spouse).
• Certain personal injury awards may also remain separate property (depending on what part of the award: e.g. non-lost wages, non-medical) under Texas law.
• The key: a spouse claiming property as separate must prove (by “clear and convincing evidence”) that it is truly separate and not community property.
• Sometimes property becomes “mixed” (commingled) when separate property income or funds are blended with community funds. In such cases, tracing and accounting may be required to untangle the separate vs. community portions.

3. Can Spouses Agree on How to Divide Their Property?

• Absolutely. Spouses may negotiate or use mediation to reach a property-division agreement that works for both.
• If they reach an agreement, they present it to the court, and the judge will generally approve it if the court finds it “just and right.”
• Agreement gives you more control and often leads to faster, less contentious divorces.

4. How Are Assets and Debts Divided in Divorce?

Here’s the process:

a) Identify and Value All Assets and Debts

• The court or parties list all community property, community debts, and separate property.
• Property like real estate, vehicles, bank accounts, retirement plans, businesses, and investments must be appraised or valued.

b) Determine a “Just and Right” Division

• The starting presumption is an equal split (50/50), but Texas law does not require a strict 50/50 split.
• The court considers many relevant facts, including each spouse’s earning ability, child custody, health, and misconduct.
• If one spouse dissipated (wasted) community assets or contributed less, the court may adjust the division to compensate.
• The court can assign specific assets or order sales to divide value. Sometimes one spouse keeps an asset and takes on a corresponding debt or offset.

c) Account for Separate Property

• Each spouse retains their separate property. The court cannot shift your separate property to your spouse.
• In mixed cases, the court may segregate the separate portion and only divide the community component.

5. Key Factors That Can Shift the Balance

In some divorces, one spouse may end up with more or less than 50% of the community estate. Some of the influencing factors include:

• Fault or Misconduct: Texas allows courts to consider fault (e.g., adultery, cruelty, financial waste) in determining a fair split.
• Dissipation of Assets: If one spouse intentionally wasted or concealed marital assets, the court may subtract or compensate accordingly.
• Earning Capacity & Future Needs: If one spouse has much greater earning potential, the court may factor that in.
• Health, Age & Education: A spouse with health problems or less education may be awarded more to level the playing field.
• Child Custody & Support: The spouse with custody of minor children may receive more of the property that supports their needs.
• Tax Considerations & Debts: How tax liabilities or debt burdens fall can influence who keeps or assumes certain assets.

Final Thoughts on Will I Lose Everything in My Divorce in Texas?

Divorce in Texas does not mean you’ll lose everything. Your rights and fair share depend heavily on how property is characterized (community vs. separate) and whether the division is truly “just and right.” Because Texas law gives judges broad discretion, the specific facts and how well you present your case can make a big difference.

How Mokolo Law Firm Can Help You.

At Mokolo Law Firm, we help you:

• Identify which assets are truly separate and which are community
• Trace commingled assets and protect your rightful share
• Leverage negotiation or mediation to reach favorable splits
• Present persuasive evidence to the court for a fair division
• Minimize unnecessary losses and protect your financial future

If you’re considering or going through divorce in Texas, don’t leave your property rights to chance. Reach out to Mokolo Law Firm today for a confidential evaluation of your assets and the best strategy to secure what is rightfully yours.