Who gets the house, the business, the 401(k), or even the dog? When a marriage ends, these are the questions that keep many couples up at night. The reality is that property division during divorce is often one of the most emotional and legally complex parts of the entire process. Financial disagreements are one of the leading causes of divorce, and ironically, money becomes an even bigger concern during the split itself.
At Daniel Ogbeide Law, we’ve helped countless individuals protect their financial futures during separation and divorce. Whether you’re dealing with uncontested divorce cases or need guidance from a contested divorce attorney, we’re committed to ensuring your assets are handled fairly and in accordance with Texas law. Our team understands how important it is to protect what you’ve worked hard to build—especially if you’re facing divorce with shared investments, debts, or property.
In this blog, we’ll explain how marital property is divided, how prenuptial agreements can affect the process, what happens in common law marriages, and what financial factors you need to keep in mind.
Understanding How Property Is Classified
Before anything is divided, the first step is determining which assets are considered marital and which are separate. This classification directly affects what each spouse is entitled to in the divorce.
- Marital property includes most assets acquired during the marriage—this could be homes, bank accounts, retirement funds, and even debts.
- Separate property typically includes anything owned before the marriage, gifts, inheritances, or personal injury settlements awarded to one spouse.
Even if an account or asset is in only one person’s name, if it was earned or purchased during the marriage, it may still be considered marital. The line between separate and marital property can become blurry, especially if both spouses contributed financially or if the asset increased in value during the marriage.
Equitable Distribution in Texas: What Does It Mean?
Texas follows a community property system, meaning that all marital property is presumed to be owned equally by both spouses. However, “equal” doesn’t always mean “split down the middle.” Courts consider a wide range of factors to determine what division of property is just and right.
Some of those factors include:
- Each spouse’s income and earning potential
- The length of the marriage
- Contributions as a homemaker or caregiver
- Fault in the breakup (infidelity, abuse, etc.)
- Health and age of each spouse
So while you may think that everything will be split 50/50, that’s rarely how things work out. If you’re in the middle of a split and have concerns about how the assets in a divorce will be handled, working with experienced contested divorce lawyers is essential.
The Role of Prenuptial and Postnuptial Agreements
If you and your spouse signed a prenup or postnup, that agreement could take precedence over general state laws. These contracts often spell out what will happen to specific property or debts if the marriage ends.
They can:
- Protect separate property from being split
- Outline spousal support arrangements
- Clarify rights over business interests or real estate
However, not all agreements are enforceable. The court will review the contract to ensure it was signed voluntarily, is fair, and complies with Texas law. If you’re relying on a prenup to protect your interests, make sure it’s reviewed by a legal professional before the divorce proceedings begin.
Common Law Marriages and Asset Division
In Texas, couples in common law marriages have the same property rights as those who are legally married. This can surprise people who believed they weren’t “officially” married.
To be considered in a common law marriage, a couple must:
- Agree that they are married
- Live together as spouses in Texas
- Represent to others that they are married
If those conditions are met, shared assets are still subject to division under community property rules. It’s essential to speak with a common law divorce attorney to clarify your rights—especially if the relationship didn’t involve formal marriage documents.
Financial Considerations During Divorce
Dividing the assets in a divorce goes beyond just listing property. There are many financial aspects that require careful planning and documentation:
- Retirement accounts and pensions may need to be divided using a QDRO (Qualified Domestic Relations Order).
- Real estate might be sold or refinanced, depending on who gets the property.
- Debts are just as important as assets—both parties may be responsible even if the debt was in one person’s name.
- Tax implications can arise from selling property or splitting retirement accounts.
- Business ownership adds another layer of complexity, especially if both spouses contributed.
If you’re in a high-asset divorce, or your situation involves business partnerships, stock portfolios, or joint investments, working with experienced contested divorce attorneys is the best way to ensure your financial future remains intact.
Facing Divorce? Don’t Let Shared Assets Become a Battlefield
Are you unsure what will happen to your home, retirement savings, or business in your divorce? The truth is that dividing assets in a divorce can be one of the most challenging steps. When emotions run high and financial stakes are significant, having the right legal support makes all the difference.
At Daniel Ogbeide Law, we help clients in all types of divorces—from uncontested divorce cases to complex splits involving property disputes. Whether you need a contested divorce attorney in Houston or guidance through a common law marriage, we’ll stand by your side to protect your financial interests with clarity, strength, and professionalism.
Call us at 832-321-7005 to schedule a confidential consultation. We’re ready to help you protect your future, your assets, and your peace of mind.