Texas Partition Agreement With Exchange In Queens
Description
Form popularity
FAQ
Every co-owner of an interest in the property (no matter how small) must agree in order for a voluntary partition to occur. The remedy when agreement cannot be reached is for one or more of the co-owners to seek a court-ordered division by means of a partition suit.
Sec. 4.102. PARTITION OR EXCHANGE OF COMMUNITY PROPERTY. At any time, the spouses may partition or exchange between themselves all or part of their community property, then existing or to be acquired, as the spouses may desire.
One common misconception among divorcing couples in Texas is that all assets are automatically split 50/50. The automatic 50/50 split is a myth!
A partition agreement does not have to be approved by the court as just and right. In addition to being in writing and signed by both parties, a partition agreement must either specifically reference “partition” or show the parties' intent to convert the property from community property to separate property.
Property acquired during the marriage (outside of the noted exceptions) is considered community property. The spouses can, however, agree to convert (or “transmute”) community property into separate property. In Texas, this is done via a written agreement establishing a partition or exchange between the parties.
The remedy when agreement cannot be reached is for one or more of the co-owners to seek a court-ordered division by means of a partition suit. It is also possible to file a “friendly” partition action if the parties desire a court decree that ratifies their agreement.
Most people know that Texas is a community property state. Many people also assume that all community property has to be divided equally in the event of a divorce. However, property can be community, separate, quasi-community or mixed character, depending on when and how it was acquired.
Under Texas law, spouses can enter into partition or exchange agreements in which one spouse transfers all or part of their present or soon-to-be-acquired community property to the other, thereby transmuting it into the separate property of the receiving spouse.
Texas presumes property acquired during marriage is community property, but exceptions exist for separate property owned before marriage or received as gifts. Inheritances remain separate property if not commingled with community assets. Keep inheritances in a separate account to maintain their status.