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Everything You Need to Know About Commingled Property in Texas 

 Posted on June 19, 2023 in Divorce

Palo Pinto Family Law AttorneyCommingled property is a complicated concept that can be difficult to understand, especially regarding real estate. In Texas, commingled property is a type of marital property subject to division in divorce proceedings. If you are getting divorced in Texas, it is essential to understand what commingled property is and how it affects your divorce case. Remember, it is best to hire an attorney at the outset of divorce proceedings to ensure you are well-informed of your legal options at this time.

Commingled Property 101

Commingled property is money or other assets combined with marital property, such as joint bank accounts or the family home. For example, if one spouse inherits money during the marriage and deposits it into a joint bank account, the money becomes commingled property. Commingled property can also arise when one spouse uses separate property funds to improve or repair the marital home.

In Texas, the court uses a tracing method to determine how much-commingled property is separate and how much is marital property. This can be a complex process that requires careful analysis of bank statements, financial records, and other documents. The court will typically look at how the assets were obtained and when they were acquired. 

It is worth noting that commingled property is not automatically divided 50/50 in a divorce. Instead, the court will use a “just and right” approach to divide the property. “Just and right” essentially means a fair and equitable manner. This means that the court will look at how long the couple was married, what each spouse contributed to the marriage, and the earning potential of the spouses.

What to Do if You Have Commingled Property

If you believe you have commingled property, there are a few things you can do to protect yourself. First and foremost, keep meticulously detailed records of all financial transactions during the marriage. This includes statements from the bank, receipts, and other relevant documents. By keeping accurate records, you will be able to provide the court with clear evidence of how much of the commingled property is separate property and how much is marital property. 

And, of course, hire a divorce attorney to help you navigate this process, as you certainly do not need to go through it alone. 

Contact a Palo Pinto Divorce Attorney

Contact the esteemed Parker County, Texas divorce lawyer with The Law Offices of Kary L. Key for a client-centered law firm dedicated to your best interests. Call 817-599-6969 for a private consultation. 



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