Texas is a traditional community property state just like Louisiana, Arizona, Idaho, Nevada, California, Louisiana, Washington, Wisconsin, and New Mexico. The life insurance community property implies any property acquired by a couple while married is equally owned by both of them. However, there are a few exceptions. Hence, this affects property dissolution proceedings in case of divorce. Serving San Antonio, TX, LeapFrog Insurance provides you what you need to know about community property risks in Texas.
Texas constitution enshrines community property in section 3.002 of the Texas family code. However, it doesn’t clearly include ‘community property’ in the provisions, but there is presumed community property as other than what is owned separately or claimed by a spouse before, during or at the time of marriage dissolution. Property owned during marriage include by devise, descent, or gift. It presumes a gift as all the income and wealth arising from property gifted between spouses. In case of dispute, parties with rights can assert and assume the burden of proof of separate property. Thus, this assertion is clear and convincing.
The separate property comprises any recovery for personal injuries or losses ought to have been sustained by a spouse during marriage. However, this also excludes recovery for loss of earning capacity during marriage. In case of any debts incurred during the marriage, community property law maintains, they are presumed to be a joint responsibility of both spouses. However, the code explores other complications in regard to such debt in detail. This includes when a spouse owes another a debt, or when the debt is incurred, and the obligations of a spouse’s debts after death. The code also clarifies how to divide divorce property among other concerns.
Might you be in ownership of community properties in Texas? Would you like additional information on how life insurance community property would help? Call today San Antonio, TX, LeapFrog Insurance. Our certified professional agents will provide you with the necessary details for a stress-free underwriting as you prepare for any associated risks.