You have acquired your fair share of oil and gas interests over the years, and while it started as something you did for fun on the side, that “hobby” has become rather lucrative and provided plenty of financial freedom for you and your family. But now you’re getting a divorce, and you can’t help but wonder if those interests will be impacted.
This is a great question, especially since Texas is a community property state. That means most property and assets acquired during the marriage will need to be divided in a just and right manner between you and your spouse.
Whether or not that includes your oil and gas interests depends on various factors.
How Are Oil and Gas Interests Classified?
Before a Texas court can begin dividing property, it must classify all assets as separate or community property. The Texas Family Code defines separate property as any assets you owned before the marriage, acquired during the marriage as a gift from a third party or an inheritance, or were awarded during your marriage as damages from a personal injury case. These items can’t be divided.
Meanwhile, anything else is assumed to be community property and subject to community property guidelines.
Which brings us to your oil and gas interests.
Oil and gas interests in Texas are treated like any other real property (homes, cars, investment property, etc.). On paper, that would mean they’d likely be subject to community property guidelines.
But it also depends on your unique situation. If you owned the oil and gas interests before marriage and can prove you kept them separate from future marital assets, a judge might view them as separate property.
Conversely, if you and your spouse used marital funds to purchase these oil and gas rights during the marriage, they will likely be divided between you in a fair and just way.
This is true even if you were the one who initiated the transaction.
That said, each divorce and property division conversation is unique, and the classification of oil and gas interests can depend on various circumstances. That will only be known after we examine the unique facts about your situation.
A few questions that would need to be answered include but aren’t limited to the following:
- Were the oil and gas interests claimed with non-marital funds?
- Were you and your spouse “separated” and not living together when these transactions took place?
- Is there a premarital agreement in place with unique rules for the division of assets?
You Deserve Sound Legal Representation
The attorneys at Christman | Daniell Attorneys have a unique and refreshing approach to the often turbulent and emotionally stressful disputes arising in divorce, child custody, and other family law cases. Our firm anchors its representation and legal advice in principles and philosophies that focus on the long-term best interests of children and families. We offer services ranging from mediation to child custody to client advocacy in a divorce action. Our mission is to provide clients with long-range perspectives and outstanding legal advice that help them rebuild their families after marital dissolution.
Please Call Christman | Daniell for Your Legal Needs Today!
Looking for family law services in Collin County, Texas? Christman | Daniell is your premier choice. With years of experience and a deep understanding of the legal landscape. Our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell. We provide compassionate and effective representation for all your family law needs throughout Collin County.
Please consult an attorney for advice about your individual situation. The material on this website and in this or any blog article we publish are for informational purposes only. They do not constitute legal advice. The attorneys at Christman | Daniell believe in tailoring legal advice and solutions to your own personal circumstances.
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