Besides custody disputes, the division of property between the spouses is the most difficult issue to resolve during the termination of a marriage. There are two basic systems for distributing property called community property and equitable distribution. The concept of community property applies to assets acquired during the marriage, which is divided in a just and right manner in a divorce. Assets acquired before the marriage or inherited or received as gifts are considered separate property and are not allowed to be divided upon divorce.
The Texas system considers all the assets and earnings accumulated during the marriage to be marital property and divides them equitably at divorce. Equitable does not mean equal, instead the court attempts to reach a fair distribution based on a variety of factors.