Do Commingled Assets Make a Texas Divorce More Complicated?

 Posted on June 08, 2025 in Complex Property Litigation

Divorce can look different for every couple, but for most, the property division component is a pain, even when you have very little to divide. However, when you are dealing with complex property division issues, such as commingled assets, Texas’s community property laws can feel like a heavy financial and emotional burden. Working with an experienced Austin, TX divorce attorney is the best way to navigate the legal process and protect your rights.

What Are Commingled Assets?

Commingling of assets occurs when separate property, such as gifts or inheritances, blends with community property, blurring the lines of ownership during the property division portion of divorce. Under Texas law, separate property stays separate unless it mixes with marital property. For example, if you inherited a significant amount of funds, those funds would belong solely to you. However, if you deposit the inheritance into a shared account that both you and your spouse contribute to and use to pay shared expenses, the inheritance would likely be considered community property, subject to equal division. 

Once commingling occurs, only clear and convincing evidence can prove that an asset is separate property. Evidence will typically include thorough financial records. Under certain circumstances, you may need to hire a forensic accountant to gather the evidence needed to prove sole ownership.

What Are the Challenges of Tracing Separate Property in a Complex Texas Divorce?

According to the Texas Family Code, all property obtained during the marriage is automatically considered community property. Therefore, if you want to prevent something from being divided in a divorce, the burden of proving that it should be considered separate property falls on you. Sometimes, this is challenging. For example, if you used one account to deposit all separate and community funds, tracing what belongs solely to you can be tedious. You will need bank statements, meticulous financial records, receipts, and extensive accounting reports to pinpoint the origins of separate property. It may seem impossible, but an attorney with experience litigating complex divorces can help you understand the steps necessary to prove what assets belong to you. 

How Can You Protect Your Separate Assets Before a Texas Divorce?

There are numerous proactive ways to ensure that separate property does not commingle with community property. Common examples include:

• Keeping separate funds in separate accounts

• Documenting all transactions for separate assets and keeping the receipts

• Getting a postnuptial agreement that clearly outlines how property will be divided in the event of a divorce

Seeking legal counsel before initiating a divorce is important in Texas, where property division laws can be brutal for high-asset or high-net-worth individuals. Take steps now to protect what is yours.

Contact an Austin, TX Divorce Attorney Today

Dividing assets and liabilities under the best circumstances can still be a complicated and stressful process. When you throw in commingled assets, disputes can get heated, and the lines between separate and community property can blur. At Powers Kerr & Rashidi, PLLC, our Travis County, TX property division lawyers can help you protect what belongs to you. Even if your assets are already mixed, there are legal avenues that allow you to prove that property belongs solely to you, and we can help. Call 512-610-6199 today to schedule an initial consultation.