What does the Texas law say about the increase in value of separate property?

In Texas, the increase in value of separate property remains separate property under the law. This principle stems from Texas being a community property state, where property acquired during the marriage is generally considered community property. However, separate property—defined as property owned by a spouse prior to marriage, or acquired by gift or inheritance—retains its status even if its value increases after marriage.

This means that if one spouse owns a property that was classified as separate property before the marriage, any appreciation in that property's value does not automatically convert it into community property. Therefore, in the event of a divorce, the original separate property, along with its increased value, is still owned solely by the spouse who initially possessed it. This distinction is crucial for determining the division of assets in a divorce settlement, as separate property is not divided between spouses.

The other options, which suggest that increases in value are split between the spouses, that the property becomes community property, or that it is treated as marital property, do not align with the definitions and principles established by Texas law regarding separate property and its appreciation.