Texas is one of nine states that is a community property jurisdiction. In general, this means that any property acquired by a couple during their marriage (with a few exceptions) is equally owned by both spouses.

What is considered community property in a marriage in Texas?

Texas is a community property state, which means that most property acquired during the marriage belongs to both spouses, and the court must divide it at divorce. In contrast, each spouse gets to keep his or her separate property when the marriage ends.

What is considered community income in Texas?

Under Texas law, all of the property and earnings of both spouses acquired during the marriage is considered to be community property (property owned together by the spouses).

How are spouses taxed under community property law?

Tax Assessment and Collection under Community Property Laws For income tax purposes, if spouses file separate returns, each spouse is taxed on 50% of the total community property income regardless of which spouse acquired the income.

When does a property become community property in Texas?

Presumption of Community Property for Property Acquired During Marriage. Texas follows a legal principle called the inception of title doctrine. Under this rule, the character of property as separate or community property is fixed when the spouses acquire the property.

When does a common law marriage become community property?

All nine community property states recognize common law marriages established in other states allowing such marriages, although some other states do not. If spouses establish a common law marriage in a state recognizing such marriages and subsequently domicile in a community property state, they become subject to community property laws.

How are assets split when married in Texas?

If you have joint assets with your spouse, special consideration must be given on how those assets are to be split but, generally, they are simply split right down the middle. However, in community property states, all earnings of either married spouse generally are considered “joint”, even if deposited into separate accounts.