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:
A: Texas is a so-called "equitable distribution" state. This means that the division of property and debts between the divorcing parties should be fair and equitable, but not necessarily equal. The court has wide discretion in dividing property.
Q: Is the "separate property" of one spouse subject to being divided up?
A: The question here is whether property "belonging to" one of the parties should be included in the marital estate for purposes of an equitable division. Generally, separate property acquired before the marriage or by gift or inheritance during the marriage may be excluded from the marital estate if neither the property nor its income has been used for the common benefit of the parties during their marriage.
Q: What if the parties occasionally use an item of separate property (for example, silver table utensils inherited by the wife) for the benefit of both parties?
A: The property may be subject to division. Where the parties regularly use property acquired by one party before marriage for the common benefit of the parties, it is more likely to be available for consideration in dividing property. The frequency of use may be considered by the court in making the 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.
