Marital Property—Protecting Your Finances During Divorce
Money earned while married does not belong to the spouse earning it. Under Texas law, the spouses’ combined income is marital property. Texas addresses marital property and separate property under Chapter 7 of the Texas Family Code. Texas is a community property state, which means marital property division is 50/50. People worry about losing money during divorce, which can sometimes lead them to make rash decisions and take unwise actions.
The Montgomery County Courts of Law and Montgomery County District Courts issued a standing order in March 2009 that prohibits certain actions regarding funds while getting a divorce. Unless court authorized, the standing order, which automatically goes into effect when a spouse files for divorce, restrains spouses from:
- Making withdrawals from bank accounts
- Spending cash in possession
- Withdrawing or borrowing against retirement accounts or pensions
- Entering a safe deposit box in either or both spouses names
- Signing checks in the other spouse’s name
- Taking actions to terminate or limit credit or change cards in the other spouse’s name
- Discontinuing or reducing money withheld from federal income taxes on wages or salary
Unless court authorized, spouses also cannot incur debt during divorce.
However, as part of divorce planning, a spouse should begin gathering evidence to substantiate separate property. For proof of separate property, save documents such as deeds, titles, inheritance records, letters that accompanied received gifts, canceled checks, credit card receipts, and other documentation that proves ownership.
By working with a Texas divorce lawyer, a spouse can plan financially and take the proper legal steps during divorce.