Community Property in Texas

[lawstuff]

Married and I purchased a vehicle with my inheritance money a few years ago (deposited into bank acct in my name only). Vehicle was paid in full, no liens, title in my name only. Car was in wreck and totaled. I purchased another vehicle that is titled in my name only with the insurance settlement money (settlement check had both spouses name on it because policy includes us both). If I divorce, is my car considered Separate Property since it was originally purchased with my inheritance money or will it be considered Joint Marital Property to be divided equally? My spouse drives a different vehicle with title in their name only (has a bank lien).

 

[disagreeable]

It would be joint property as the insurance payout and repurchase co-mingled the asset in the marriage.

 

[lawstuff]

My insurance co would not put check in my name ONLY since our Policy has both names. Spouse signed check over to me because they knew it was purchased with Inheritance & Separate. I had no choice but to purchase another vehicle. How else could my car have been kept SEPARATE property after the accident? Just curious.

 

[army judge]

My insurance co would not put check in my name ONLY since our Policy has both names. Spouse signed check over to me because they knew it was purchased with Inheritance & Separate. I had no choice but to purchase another vehicle. How else could my car have been kept SEPARATE property after the accident? Just curious.

You could have divided the proceeds, and purchased another car with funds remaining from your inheritance money.

Or, you could have purchased a car and GIFTED it to your brother, mother, uncle (other TRUSTED relative), and IF you ever divorced, that party could GIFT the vehicle back to you.

If you don't trust the your spouse, divorce today and don't remarry.

That way, NONE of your stuff will be subject to Texas' community property laws.

In Texas, that's the only way.

Any and ALL other monies you acquire during your marriage belong to either of you, EQUALLY.

 

[lawstuff]

Appreciate the excellent information! Trust DURING a marriage is one thing but once the divorce papers are filed, people CHANGE. And then it's too late to protect your assets. Better to know the laws NOW. I always thought Inheritance would remain separate property as long as there was at least a paper trail. Guess I was wrong but I learned something.

 

[army judge]

Appreciate the excellent information! Trust DURING a marriage is one thing but once the divorce papers are filed, people CHANGE. And then it's too late to protect your assets. Better to know the laws NOW. I always thought Inheritance would remain separate property as long as there was at least a paper trail. Guess I was wrong but I learned something.

You're most welcome, and I applaud your efforts to educate and inform yourself BEFORE any negative events transpire.

If more people took the time to acquire knowledge, we'd all be much better off.

I wish you well, sir.

 

[disagreeable]

Had you carried the insurance policy in your name only, paid from non co-mingled funds and excluded your spouse as a driver, it would have kept the separation.

 

[lawstuff]

Thank you for the reply, disagreeable. Exactly the information I was after.