A tax refund can be divided by the divorce court, just like any other item of community property. However, if the money has already been spent, it is sometimes difficult to get it back. When a significant tax refund is expected, the best practice is to get an injunction prohibiting either party from spending it. In most cases, you can get an agreement to divide it in half, rather than have it tied up until a court hearing.
In most cases, you can get an agreement to divide it in half
If it does require a court hearing, the tax refund can be addressed before the divorce is final. The court can divide it in any manner that it considers “just and right.” This is often 50/50, but sometimes one party may get either more than half, or even the entire thing. The judge will look at the financial situation that both parties are in before making that decision. Do you have a family law question that you would like to ask a Texas attorney? Post it here.