What happens to cash and bond gifts during a divorce in Texas?

Full question:

During my marriage, I received sizable cash and EE Bond gifts from my grandparents. Some were used by my mate to invest in a business venture that failed or for purchases. What is the status of their value during a divorce?

  • Category: Divorce
  • Subcategory: Property Settlements
  • Date:
  • State: Texas

Answer:

In Texas, property division during a divorce follows the principle of "equitable distribution." This means that while property and debts are divided fairly, they may not be split equally. The court has significant discretion in how to allocate property.

Generally, property that one spouse owned before the marriage, or that was received as a gift or inheritance during the marriage, is considered separate property. This property may not be included in the marital estate for division, as long as it hasn't been used for the couple's joint benefit during the marriage.

If separate property is used occasionally for the benefit of both spouses, it may be subject to division. For instance, if a couple regularly uses an inherited item, like silver utensils, it could be considered for property division. The court will look at how often the property was used together when making its decision.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A marital gift is a gift given to one spouse during the marriage that is intended to benefit the marital relationship. Unlike separate property, which is owned by one spouse and not subject to division, marital gifts can be considered part of the marital estate. This means they may be subject to division during a divorce, depending on how they were used and whether they are deemed to have been intended for the couple's joint benefit.