ShareIncome from Gift between Spouses = Separate Income or property arising from a gift between spouses remains the separate property of that receiving spouse. Income from Gift from 3rd Party = Community However, income or property arising from gift by a 3rd party will be deemed community property (absent agreement of spouses).

ShareThough property purchased during the marriage is presumed community property, a rebuttable presumption of separate property may apply when acquiring real estate during marriage as follows: Purchased During Marriage, One Spouse Named as Grantee. A deed from one spouse naming the other as grantee creates a rebuttable presumption that the grantor-spouse intended to gift the [...]

ShareThough property purchased during the marriage is presumed community property, a rebuttable presumption of separate property may apply when acquiring real estate during marriage as follows: Purchased with Separate Property, But Both Spouses Named as Grantees. When the purchase is made with separate property funds, but both spouses are named as grantees, a presumption arises [...]

ShareThough property purchased during the marriage is presumed community property, a rebuttable presumption of separate property may apply when acquiring real estate during marriage as follows: Separate-Property Recitals: If the deed includes a “separate property recital”, the property is presumed to be the purchaser’s separate property. This is language in a deed indicating that the [...]

ShareRailroad employees are not eligible for social security and their retirement benefits are divided into Tier 1 and Tier 2 benefits. Tier 1 Benefits Not Subject to Characterization. Tier 1 benefits are basically equal to the amount the railroad employee would have received under social security and are not subject to characterization. Tier 2 Benefits [...]

ShareStock Options & Restricted Stock Plans. Characterization of employer provided stock options and restricted stock are governed by a formula expressed in Tex. Fam. Code § 3.007 (d) – (e). Each grant of a stock option or a restricted share must be characterized using the applicable formula. Stock Options Granted Before Marriage. A stock option [...]

ShareProfessional & Personal Goodwill Professional or personal goodwill attaches to the person and does not exist apart from the individual’s skills, rather than the trade or the business due to that person’s professional skill or ability. As a result, professional goodwill is not considered property and not subject to characterization. Professional goodwill terminates on that [...]

ShareFuture wages + post divorce efforts required = expectancy interest Expectancy Interests generally not subject to characterization. Future wages are generally not subject to characterization as community property. Even if the future wages are derived or earned in part for the spouse’s work during marriage, if that future income is contingent upon the spouse’s continued [...]

ShareProfessional Goodwill Professional or personal goodwill attaches to the person and does not exist apart from the individual’s skills, rather than the trade or the business due to that person’s professional skill or ability, and terminates on that person’s death, retirement, or disablement. Professional Goodwill is considered property and not subject to characterization. Nail v. [...]

ShareGeneral Rule: Property of A Partnership. Generally, property of the partnership is owned by the partnership and not subject to being characterized as either community or separate. For example, capital contributions and retained earnings are considered partnership property, and not subject to characterization. Further, unlike a corporation, partnerships are not subject to piercing. Marshall v. [...]