Partition and Exchange of Community Property
(TX)

This template for Partition and Exchange of Community Property allows a married couple in Texas to change the character of existing or future community property into separate property. This template includes practical guidance, drafting notes, and an optional clause. Texas law provides that at any time after marriage spouses may partition or exchange between themselves all or part of their existing or future community property. Tex. Fam. Code § 4.102. The Texas Constitution affirms this right. Tex. Const. art. XVI, § 15. Spouses may also agree to convert separate property of either spouse to community property. Tex. Fam. Code § 4.202. The Texas Family Code defines separate property as (1) the property owned or claimed by a spouse before marriage; (2) the property acquired by a spouse during marriage by gift, devise, or descent; and (3) the recovery for personal injuries sustained by the spouse during marriage, except any recovery for loss of earning capacity during the marriage. Tex. Fam. Code § 3.001. Community property is property other than separate property acquired by either spouse during marriage. While the Family Code also allows a married couple to convert separate property to community property, this agreement should be used solely to partition and exchange existing or future community property interests. Practitioners are ill advised to represent both spouses when preparing a Partition and Exchange of Community Property, as such dual representation constitutes a conflict of interest. Even if spouses are willing to sign a waiver of conflict, best practice dictates that each spouse should have independent representation when changing the character of property. For more information on dual representation of spouses, see Ethical Issues in Estate Planning (TX). For a full listing of key content related to estate plans for married or partnered people in Texas, see Estate Plan for Individual with Spouse or Partner Resource Kit (TX). For a release of community property template, see Community Property Interest Release (Married Individual) (TX).