A Texas husband incurs $50,000 in credit card debt during the marriage without his wife's knowledge. The creditor seeks to collect against community property. Under Texas law, can the creditor reach community property to satisfy this debt?
Correct Answer
A) Yes, the creditor can reach community property under the husband's sole management, but not community property under joint management or the wife's sole management
Under Texas Family Code §3.202, during marriage, community property subject to a spouse's sole management is subject to the liabilities that spouse incurs. However, community property under the other spouse's sole management or under joint management is generally not liable for debts incurred by only one spouse (with certain exceptions for necessaries). This protects the non-debtor spouse's managed community property.
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- → A Texas homeowner defaults on a personal loan of $50,000. The creditor obtains a judgment and seeks to force the sale of the homeowner's primary residence to satisfy the debt. Under Texas homestead law, can the creditor force the sale?
- → A creditor attempts to place a lien against a Texas family's homestead for an unpaid medical bill of $25,000. Under Texas homestead law, can this lien attach to the homestead?
- → A Texas homeowner converts their homestead into a rental property and moves to another state. After two years, a creditor seeks to foreclose on the former homestead for an unpaid business debt. Under Texas law, can the creditor force the sale?
- → 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?
- → 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?
- → Under the Texas Family Code, what is the legal presumption regarding property acquired during a marriage in Texas?
- → After 10 years of marriage, William inherits a lakehouse from his father. William's wife, Karen, assumes the inheritance is community property because they received it during their marriage. Under the Texas Family Code, who is correct?
- → Under the Texas Family Code, what is the legal term for a written agreement between spouses that converts community property into one spouse's separate property?
- → Under the Texas Family Code, what happens to community property when one spouse dies without a will in Texas?
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Previous Question
A Texas married couple signs a marital property agreement (also called a post-nuptial agreement) converting their community property home into the husband's separate property. Under the Texas Family Code, what requirements must be met for this agreement to be enforceable?
Next Question
A Texas wife operates a business she started during the marriage. She wants to use community funds to invest $200,000 in expanding the business without her husband's involvement. Under Texas community property management rules, can she proceed?