How To Spot a Community Property Income Issue in Your Divorce
Community property is a huge issue in many divorce cases. You need to know what community property covers because if you make a mistake, it can cost you. One of the most common mistakes people make concerns income. The mistake is not knowing how Texas community property laws apply to your spouse’s income , and the effect that has on a divorce. So let’s discuss: how can you spot a community property income issue?
Most people know community property covers almost all the property either of you acquired during the marriage. That includes a house. It also includes cars and the usual things you think of when you think of property. But what about income and earnings?
Wages Are Community Property
The community property laws apply to your income, earnings, and wages. It works the same way they apply to a house. The income you make from your job during the marriage is community property. The income your spouse makes during the marriage is also community property.
Now, since your income is community property you have to deal with certain issues that go along with that. For example, issues such as gifts, waste, and fraud.
Adultery and Community Property Income
If your spouse is having an affair they may be spending money on their new interest. This could be buying them gifts, paying travel expenses, or paying their expenses. If they do things like that, then they are improperly spending community property. You can recover that money with the right strategy.
Separate Property Expenses
If your spouse is using their income to pay expenses for separate property they own, you can get reimbursed. This includes bills like a mortgage, insurance, property taxes.
If your spouse is paying the premiums on a life insurance policy that is separate property, you can get that money back. But if you don’t know the right technique, you can end up losing out on a lot of money.
Legal Separation, Not Separate Income
Community property income is something to keep in mind if you have an extended separation. You’re still married until the judge signs the divorce decree. That means your earnings and new property are still subject to the community property laws. If you think living apart changes the nature of your income or property, think again.
The Next Step
If you think you have a community property income issue in your divorce, then protect yourself. Let us know what happened and we’ll show you how to protect your rights.