Legal Question in Family Law in Texas

Are trust distributions separate property?

My husband and I are getting divorced and we kept money he received from a trust distribution in our joint savings account, which also contained monies earned from our jobs and my profit-sharing distribution. He had always told me that all the money in that account was ''ours'' not ''his'' or ''mine,'' and that either one of us should use it as we please. We always followed that rule and have used it to pay bills, go on vacation, purchase vehicles, etc. After we had a long conversation one night about our marriage, it became evident to me that eventually he was going to leave me, and I decided to withdraw half of that money and open my own account with it, to protect myself (I had no job, had an invalid person to care for, car payments to make). Now I've heard that since a large portion of that money was from his trust distribution, it is his separate property and I will have to give it back. Is this true?


Asked on 7/25/02, 4:19 pm

1 Answer from Attorneys
Bradford Downs Bradford K. Downs, Jr. Attorney at Law

Re: Are trust distributions separate property?

No, that is not entirely true. All property that is owned or accumulated during a marriage in Texas is community property. However, upon divorce a spouse can attempt to presume that certain funds are that spouses separate funds. This is often something that was acquired before marriage or the result of a gift or inheritance to that spouse. Also, whenever separate funds or property is placed by one spouse in the name of both spouses, it is presumed that the spouse made a gift of 1/2 of the property to the other spouse. Especially if those funds were commonly used by both spouses during the marriage. Divorces can get very complicated when they involve issues of separate and community property. You should have an attorney represent your interest in the divorce. If you have any further questions or are in the Houston area and would like to make an appointment to see me, please do not hesitate to call.

Read more
Answered on 7/25/02, 4:29 pm


Related Questions & Answers

More Family Law, Divorce, Child Custody and Adoption questions and answers in Texas