Texas Partition And Exchange Agreement Form

The partition or exchange contract is the way in which property that would otherwise be considered common property can be converted into the property of a single spouse. In addition, any money that the spouse earns from this property belongs exclusively to that spouse. Division agreements take place during a marriage and the spouses owe each other a fiduciary duty. Before they got married, they were strangers. After their marriage, let them treat each other fairly. To be enforceable, the partition or exchange agreement must apply as follows: if a party wishes to challenge a partition or exchange agreement or claims that it is unenforceable, that party must generally provide one of the following: the spouses may also convert separate property into common ownership. Separate property from a spouse includes property that belonged to or was claimed by the spouse before the marriage; property acquired by a spouse during marriage by gift, development or ancestry; and the proceeds of bodily injury suffered by the spouse during the marriage. See Tex. Fam. Sec code 3.001. Texas Family Code Section 4.205 governs the enforceability of spouses to convert separate property into common property.

An agreement to convert individual property into collective ownership must be entered into voluntarily and the party converting its individual ownership must have disclosed fairly and adequately the legal effect of the transformation of its property into common ownership.