Austin probate lawyer

Community Property vs. Separate Property

Texas probate law distinguishes two types of property for married couples – community property and separate property. In the event that one spouse dies intestate (i.e., without a valid will to direct the distribution of their assets), community property and separate property are dealt with differently under state law. The classification of an asset as “community” or “private” can be broadly outlined by the following:

Separate property includes any income earned by either spouse before the marriage took place, gifts or inheritance both before and during the marriage, and any capital gains made on or from other assets considered as separate property.

Community property includes the income of both spouses during the marriage; any dividends, interests, or capital gains made on community property, and any dividends or interest earned from separate property during the marriage.

Both separate and community property are persistent; that is, they remain classified as either separate or community property even if they are converted from cash to other assets or vice versa. Therefore, any assets bought using pre-marriage income would qualify as separate property. Unfortunately, the kind of precise record-keeping required to truly keep track of all such transactions is difficult to do. Further complicating the issue is the fact that any individual asset can be considered a mix of community and separate property, depending on how the asset was obtained.

For more information on probate, contact an Austin probate lawyer from Slater & Kennon, LLP at 512-472-2431 today.

Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.