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?
Correct Answer
A) Yes, because community property generated by a spouse's personal efforts is under that spouse's sole management
Under Texas Family Code §3.102(a), community property that would have been the spouse's if single—including income from personal efforts and property traceable to that income—is under that spouse's sole management. The wife's business income from her personal labor is under her sole management, and she can reinvest it in her business without her husband's consent.
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Previous Question
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?
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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?