Texas Divorce Property Division Worksheet: Asset and Property Distribution

Dividing property can be one of the most challenging aspects of the divorce process in Texas. At Hannah Law PC, we understand that determining how to distribute assets is a critical step toward a fresh start. Whether you’re dealing with family homes, retirement accounts, or shared debts, ensuring a fair division requires careful consideration of Texas law and your unique circumstances.

We’ve created a Texas divorce property division worksheet to help couples identify separate property vs marital assets and navigate the division process. By using this resource alongside the personalized guidance of our experienced legal team, you’ll be better prepared to reach a fair resolution that will set you on the path toward a secure future.

To get help from a trusted divorce attorney in Friendswood, TX, contact Hannah Law today.

Community Property Vs Separate Property in Divorce

Texas is a community property state. This means that most property obtained during the marriage is owned jointly by both spouses. There are exceptions like inheritances and gifts. Texas law sets a standard that marital property should be divided fairly, but that doesn’t automatically mean a 50/50 division.

Separate property is not divided during a divorce. Separate property includes anything you owned before the marriage or received as a gift, inheritance, or through a will during the marriage. It also covers items bought with money that was yours alone and gifts exchanged between spouses.

Divorce Property Division Worksheet 1: Identifying Property

Alex and Jordan are in the process of divorcing and have started organizing their financial assets and debts. Here’s what their worksheet looks like so far:

• Alex’s Separate Property: A car purchased in college, a gold bracelet inherited from an aunt, and $7,000 received as a gift from family.
• Jordan’s Separate Property: A house owned before the marriage, a savings account with a $12,000 balance, and a personal credit card (paid off monthly).
• Marital Property: Jordan’s SUV (paid for using a joint account), a mortgage from refinancing the house, and a shared collection of vintage records.

This is a good foundation to build on. So, what’s the next step?

Contested vs Uncontested Divorce and the Impact on Property Division

If both spouses agree on how to divide debts and property in a divorce settlement, the court will review the terms for fairness before finalizing the divorce decree. If an agreement can’t be reached, the court will decide how to divide property and debts.

In an uncontested divorce, both spouses are on the same page about key issues in the divorce like property division, child custody, and child support. A contested divorce happens when the spouses can’t agree on some (or all) of the issues. Maybe there’s a dispute over who gets the family home, how to divide retirement accounts, or what the custody arrangement should look like.

In these cases, the court gets involved in making the decisions. Contested divorces typically take longer and are more costly.

Divorce Property Division Worksheet 2: Dividing Vehicles

Alex and Jordan can’t agree on the SUV. It was purchased for Jordan, but the payments have been made from their joint account. There are still 18 months of payments remaining. Alex feels that if Jordan gets to keep the SUV, they should get an equivalent benefit, like help purchasing a new vehicle. Jordan argues that the SUV is primarily used for work, has poor gas mileage, and will likely need to be traded in after the divorce for a more practical used car.

Here’s what the judge will likely consider:

• Both Alex and Jordan signed the purchase agreement for the SUV, making them equally responsible for the remaining payments.
• Jordan uses the SUV 90% of the time, primarily for work-related travel. The name of Jordan’s consulting business is also displayed on the vehicle, and the business takes a tax deduction for its use.
• Jordan has been covering the costs of insurance, maintenance, and fuel from their separate bank account.
• The combined cost of insurance, maintenance, and fuel roughly equals the monthly payment amount.

Given these factors, the judge would likely decide that Jordan should keep the SUV and have the title transferred solely to their name. To balance things out, Alex could receive reimbursement for half of the payments made from the joint account toward the SUV.

Retirement Plans and Business Assets in a Texas Divorce: Equitable Distribution

Dividing retirement plans and business assets can be complex. Retirement accounts accumulated during the marriage are considered community property, while contributions or accounts established before the marriage typically remain separate property. Similarly, business assets may also involve a mix of community and separate interests, especially if one spouse started or operated the business during the marriage.

Courts use a Qualified Domestic Relations Order (QDRO) to divide retirement plans in a divorce. This allows funds to be split without tax penalties. Business assets require a detailed valuation to determine the company’s worth and how much of that value is considered community property. Courts aim to ensure a fair division that respects each spouse’s contributions and future financial stability.

Property Division Worksheet 3: Retirement Accounts and Business

Let’s look at an example of dividing retirement accounts and business assets.

Retirement Plans

• Alex has a 401(k) that was opened five years before the marriage, with a current balance of $150,000.
• During the marriage, Alex contributed $50,000, which is considered community property.
• Jordan has a pension plan through their employer. The portion earned during the marriage is considered community property, even though the total benefit will not be fully vested until five years from now.

Business Assets

• Jordan operates a consulting business they started two years into the marriage. While the business is under Jordan’s name, both Alex and Jordan agree it’s a marital asset since it grew significantly during the marriage, partly due to Alex’s support at home. The business is now valued at $200,000.
• Jordan argues that most of the business’s success is tied to their personal expertise, so dividing the value 50/50 would be unfair. Alex believes their contribution to the business’s growth should entitle them to a portion of its value.

Likely Division

For the retirement plans, the court will likely divide the community property portion of both accounts equally. In Alex’s case, this means Jordan would be entitled to half of the $50,000 contributed during the marriage. For Jordan’s pension, Alex could receive a share of the marital portion once the pension is vested, secured by a QDRO.

For the business, a professional valuation may allocate a portion of its $200,000 value to Alex, representing their indirect contributions to its success. The court may also consider whether Jordan will retain ownership of the business and how this impacts other aspects of the property division.

Personal Property: Understanding Divorce and Property Rights

Not all personal property is separate property. During the divorce process, couples may disagree over ownership of artwork, jewelry, and collectibles.

Judges often resolve disputes by selling valuables and dividing the money. Couples with valuable collections, art, or heirlooms they do not want to sell should try to reach an agreement.

Texas Divorce Worksheet 4: Dividing a Vintage Record Collection

Alex and Jordan share a love for classic rock. They have a large collection of vintage records and music memorabilia. Their collection was appraised at more than $8,000.

Here are a few ways Alex and Jordan could handle dividing their collection:

• Keep the Collection Intact: One of them could keep the entire collection and pay the other its full appraised value as part of the property division. If they can’t agree, the judge will decide who keeps the records. It could even come down to a coin flip if necessary.
• Sell the Collection Together: They might decide to sell the collection as a whole at auction or to a private buyer. After getting the best fair price, they can split the proceeds evenly. Alternatively, they could each pick a favorite piece or two and sell the rest.
• Divide the Collection Piece by Piece: Another option is to take turns choosing items from the collection until it’s all divided. This way, each can start fresh and potentially rebuild their own collection over time.

If they can’t agree on any of these options, the judge will likely order the collection to be sold and the proceeds split. While it may not be ideal, it ensures the divorce moves forward without further complications.

Deeds, Mortgages, and Refinancing in Divorce: Property Division Laws

Dividing the family home in a divorce is even trickier when one spouse owned the house before the marriage, but the couple refinanced it together later. If the deed wasn’t updated to include both names, you end up with an awkward situation: one spouse owns the home, but both are responsible for the mortgage.

In a contested divorce, the spouse whose name is on the deed might demand the other move out while still expecting them to cover half the mortgage payments. Things can get even messier if kids are involved. If the spouse staying in the home isn’t the primary caregiver, disputes over custody, child support, and spousal support can spiral into ongoing conflict.

While these cases aren’t common, they do happen. The best way to avoid these headaches? Get solid legal advice early on—before or during the marriage—to make sure both spouses are properly listed on the deed if that’s the plan. It’s a small step that can save big stress later.

Divorce Property Division Example: Dividing a House

Jordan owned the house long before marrying Alex and always planned to add Alex’s name to the deed. They tried to update it once, but the paperwork was returned with an error, and they never got around to fixing it. During the marriage, they refinanced the home when its value increased, and the bank added both their names to the mortgage.

So, who gets to keep the house, and who has to pay the mortgage?

Since they used money from their joint account to make mortgage payments, Alex may be entitled to reimbursement for their share of those payments. In a community property state like Texas, Jordan could keep the house, and both Alex and Jordan would still be responsible for the mortgage unless otherwise decided. In an equitable distribution state, a judge might order the house to be refinanced in Jordan’s name alone, as it wouldn’t be fair to require Alex to pay for a home that isn’t theirs.

If Jordan decides not to keep the house, they could sell it and keep the proceeds, as Alex likely wouldn’t be entitled to any profit. Dividing a home where one spouse has the title and both are on the mortgage can be a long and tricky process. Luckily, situations like this are rare, but they do happen.