Divorce decrees become legally binding agreements that govern the actions of both parties involved in a divorce. While the end of the divorce proceedings can be a welcome relief, it doesn't necessarily mean the legal issues surrounding the divorce are over. Situations may arise where one party is not complying with the orders or the orders need to be modified due to a change in circumstances. 

In this guide, we will discuss what you need to know about the enforcement and modification of divorce orders.

Enforcement of Divorce Orders

When one party fails to follow the terms of a divorce order, the other party can take legal action to enforce the order. Some common issues that require enforcement include failure to pay child support or spousal support, failure to comply with child custody arrangements, and failure to divide marital property as per the order.

Divorce in Texas is a complex process that becomes even more complex when high-value assets are involved. In high-asset divorce cases, Texas couples and individuals must consider the tax implications associated with property division, spousal support, and child support.

There are various tax implications that come into play when you get a divorce in Texas, and these can have an impact on distribution of marital assets and other aspects of your case. This is why it is always important to consult a trusted Austin high-asset divorce attorney on such matters.

That being said, let’s discuss the tax considerations involved in a high-asset divorce case in Texas and a few strategies you can use to minimize tax liabilities.

When a couple gets a divorce, they often think that once the divorce is final, their connection to each other will be done. In some ways that is true. The marriage is over. The division of assets and property is usually addressed within weeks or months following the divorce. Quit claim deeds are recorded, vehicle titles transferred, QDRO agreements for retirement accounts drawn up, etc. But there are some areas of divorce that do not end when the ink is dried on the divorce decree.

Child support is one issue that is decided in divorce that is often long-term. The financial obligations of one spouse to the other can last for years. This is why many divorces include a clause that requires one or both parents to obtain life insurance policies that will provide financial support for the child should something happen to the parent.

Child Support

Parents are usually required under Texas law to pay child support until the child turns 18 or graduates from high school, whatever is secondary. In some cases, the parent is required to provide support if the child attends college after they complete high school.  

Every divorce has its own unique issues that must be addressed, however, for the most part, the process for each divorce is similar. However, when it comes to high asset divorces, the discovery, negotiations, and ultimate decree can be much more complex than a divorce that does not involve high net-worth assets. This is why it is important to have an attorney who is experienced and skilled in high-asset divorces. The following are some of the factors that indicate having a law firm that regularly handles complex divorces, like Powers and Kerr, PLLC, is in your best interest.

Numerous Real Estate Holdings

While many married couples own the home they live in, couples involved in high-asset divorces often own several properties. In addition to the marital home, they can own vacation homes, rental properties, commercial properties, and land.

Investments

High-net-worth couples not only have checking, savings, and retirement accounts, but they also typically have stock market investments with full portfolios that will pay out dividends in the future. The value of the investments often fluctuates, so it is important to have an attorney who has experience in determining the fair value of these investments so you are protected when it comes to the division of assets in your divorce.

It is rare for a high asset divorce not to involve complex financial issues that need to be addressed. If your marriage was one that involved high net worth assets and property, your divorce attorney may suggest hiring a forensic accountant to analyze all the financial documents submitted by both parties in order to help determine how those assets should be divided, how much child support and spousal maintenance should be paid, and other financial decisions.

When Should a Forensic Accountant Be Consulted?

While many people think forensic accountants are only called in to help in a divorce if there is suspected financial wrongdoing on the party of one of the spouses, their services can actually be beneficial in a divorce where both parties are agreeable, but their financial situation is complex.

Some of the more common reasons why an attorney will suggest a forensic accountant be hired include: