Before her marriage to David, Sarah owned a rental house in Austin. After the wedding, rental income from the property accumulates in a joint bank account. Under the Texas Family Code, how is the rental income classified?
Correct Answer
A) Community property because income generated during marriage is community property, even if from separate property
Under the Texas Family Code §3.002, all property acquired during marriage other than by gift, devise, or descent is presumed community property. Unlike some community property states, Texas treats income from separate property (such as rental income from a property owned before marriage) as community property. The rental house itself remains Sarah's separate property, but its income during marriage is community property.
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Previous Question
Mark and Lisa are married and live in Texas. During their marriage, Mark purchases an investment property using earnings from his salary. Under the Texas Family Code, how is this property classified?
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During their marriage, James receives a $100,000 inheritance from his grandmother. He deposits the inheritance into a separate bank account in only his name. Under the Texas Family Code, how is this inheritance classified?