In Texas divorce cases, property is presumed to be community property if either spouse possesses it during the marriage or at the time of the divorce. Tex. Fam. Code Ann. § 3.003. To rebut the presumption, a spouse must trace the property and clearly identify it as separate by clear and convincing evidence. How a property is characterized is generally determined based on the character it has at inception, or when the party’s title has vested.
In a recent case, a husband challenged the trial court’s characterization of property received as a gift from the wife’s parents. When he petitioned for divorce, the husband requested a disproportionate share of the marital estate, due in part to “fault in the breakup…” He also asked for reimbursement to his separate estate for funds he had expended for the community estate’s benefit.
He testified that the property where the couple lived had been gifted to them by the wife’s parents. The “Gift Certification” signed by the wife’s parents stated they “intend to give to [husband and wife] a gift . . .” of the lot. It also listed the relationship as “son in law to be and daughter.” Both the husband and wife signed in acknowledgement of receiving the gift.