Dallas Property & Asset Division Attorney
Texas is a community-property state (Tex. Fam. Code §3.002). All property acquired by either spouse during marriage is presumed community and must be divided in a "just and right" manner under §7.001 — which is not necessarily 50/50. Separate property (§3.001) — anything owned before marriage or received by gift, devise, or personal-injury recovery — is not divisible if properly traced. Garcia-Windsor, P.C. handles characterization, tracing, valuation, and division for Dallas clients.
How Texas Community Property Works
Under §3.002, all property possessed by either spouse during or on dissolution of marriage is presumed community. That presumption is rebuttable — a spouse claiming a piece as separate property must prove it by clear and convincing evidence (§3.003).
Separate property is defined by §3.001: property owned before the marriage, property acquired during marriage by gift, devise, or descent, and recovery for personal injuries sustained during marriage (except for loss of earning capacity, which is community). Everything else is community.
Income earned during marriage — including income from separate property — is community (Texas is one of the few community-property states that treats separate-property income as community). This makes ongoing rental income, dividends, and interest on separate accounts an important characterization issue.
The "Just and Right" Division Under §7.001
Section 7.001 directs the court to divide the community estate in a manner that is "just and right, having due regard for the rights of each party and any children of the marriage." This is not a 50/50 mandate — the Texas Supreme Court has upheld divisions ranging from 55/45 to 80/20 or more.
Factors courts consider include (a) fault in the breakup of the marriage, (b) disparity in earning capacity, (c) health, (d) which spouse has primary custody, (e) education and future earnings, (f) separate estates of each spouse, (g) fraud on the community, and (h) tax consequences of the division.
Reimbursement claims under §3.402 allow one estate to be compensated when it conferred a benefit on another (community funds paying down separate-property debt, one spouse's time enhancing a separate-property business). The court has broad discretion under §7.007 to grant, deny, or offset reimbursement.
Our Bilingual Approach at Garcia-Windsor, P.C.
At Garcia-Windsor, P.C., every property division case is led personally by founding attorney Isabela A. Garcia. Isabela is Board of Legal Specialization-eligible family law counsel, a Super Lawyers Rising Star for family law in Dallas, and one of the Top 50 Women Leaders in Texas. She serves as the exclusive consulting attorney for the Mexican Consulate General of Dallas through the PALE program (Programa de Asistencia Jurídica a Personas Mexicanas).
We are fully bilingual — English and Spanish — from the first phone call through the final decree. That matters when a spouse, child, or key document lives on the other side of the border. Our office is in the Bishop Arts District at 1015 N Bishop Ave, Dallas, TX 75208; consultations are free and we respond to every inquiry within one business day.
We represent clients across Dallas County, Tarrant County, Collin County, Denton County, Ellis County, Kaufman County, and Rockwall County and appear regularly in the 254th, 255th, 256th, 301st, 302nd, 303rd, 304th, and 305th Judicial District Courts of Dallas County, filed through the Dallas County District Clerk at the George Allen Sr. Courts Building, 600 Commerce Street, Dallas, TX 75202.
How Tracing Works in Practice
When separate-property funds have been deposited into a joint account and used for both community and separate expenses, Texas uses the community-out-first presumption: community funds are presumed to be spent first, so the separate deposit is presumed to remain.
For more complex commingling, expert forensic accountants apply the "clearing-house" method — tracking each deposit and withdrawal to determine which portion of the current balance is separate. Contemporaneous records (bank statements, wire confirmations, brokerage statements) are the difference between a successful trace and a failed one.
Real estate purchased partly with separate down payment and partly with a community mortgage is characterized under the inception-of-title rule and the pro-rata rule articulated in Cockerham v. Cockerham. The community acquires a proportional interest as it pays principal.
Businesses, Retirement, and Other Complex Assets
Businesses started before marriage but grown during marriage have a separate-property base with a community-property growth increment. Valuing this requires distinguishing between passive appreciation (usually separate) and appreciation from community-time-and-talent contribution (community reimbursement).
Retirement accounts are typically divided by a Qualified Domestic Relations Order (QDRO) for ERISA plans, a Court Order Acceptable for Processing (COAP) for federal government plans, and a Retired Pay Order for military benefits. Each requires precise drafting.
Stock options and restricted stock granted during marriage but vesting after divorce are apportioned on a time-based fraction under §3.007. Deferred compensation, phantom equity, and executive bonuses each have their own characterization rules.
When to Call a Dallas Property-Division Attorney
Before you sign a Rule 11 letter agreement, an informal spreadsheet, or a mediated settlement — even one drafted by a mediator. Small errors in characterization or valuation compound quickly.
Before you accept your spouse's tracing report at face value. In our experience, roughly half of unassisted separate-property claims contain characterization errors that materially favor one side.
Call 214-466-6699 or submit the online form for a free bilingual consultation — we respond within one business day.
Frequently Asked Questions
Does Texas split everything 50/50 in a divorce?
No. Texas requires a "just and right" division (§7.001) — this can be 50/50 but frequently is not. Courts consider fault, earning capacity, health, custody, and other statutory factors.
What counts as separate property?
Under §3.001: property owned before marriage, property acquired during marriage by gift, devise, or descent, and personal-injury recoveries (except for loss of earning capacity, which is community).
Is my inheritance safe from divorce?
Yes, if you can trace it. Inheritance is separate property by statute, but commingling with community funds and using it for household expenses can make tracing harder. Keep it in a segregated account.
What happens to a business I started before marriage?
The business's pre-marital value is separate. Growth during marriage that came from your time and talent may give rise to a community reimbursement claim under §3.402. Passive appreciation is usually separate.
Can I keep the house?
The court can award the marital home to one spouse (often the primary custodial parent) with an owelty lien to compensate the other spouse for their community share, or it can order the home sold and the net proceeds divided.
How is a retirement account divided?
Community-property portions of ERISA-covered private-employer plans are divided by a QDRO. Federal-government plans use a COAP, and military benefits use a specialized order. Each is drafted after the decree.
What is a reimbursement claim?
A reimbursement claim under §3.402 asks the court to compensate one marital estate for a benefit it conferred on another — for example, community funds paying down a separate-property mortgage. The court has broad discretion under §7.007.
How long does property division take?
In an agreed divorce, property division can be finalized in the same 60-day waiting period. In a contested divorce involving business valuation or tracing, expect 6-18 months.
Ready to discuss your property & assets case?
Call our Dallas office at 214-466-6699 or request a free consultation online.