Tax responsibilities are significantly impacted by one's marital status, and delaying a divorce until the beginning of a new year can provide relief from associated tax challenges. In most cases, even if a couple remains married for just a day in a given year, they still have the option to file taxes jointly as a married couple. Divorce is emotional, and it can be stressful, especially during the holidays. At Powers and Kerr, PLLC, a high-asset Texas divorce attorney can help you understand the tax implications so that you can make an informed decision. 

What If I Am In The Middle of The Divorce?

If the divorce is not final yet, you may be able to file a joint tax return even if you and your spouse no longer live together. This could be helpful because it allows you to qualify for a bigger standard deduction when you put both your incomes together on one tax return.

However, you could be liable for all taxes due, even on income that your spouse earned, no matter if it is higher than yours. Therefore, couples filing tax returns are better off staying married until December 31 of a tax year to take advantage of the Married Filing Jointly status. 

Some spouses will undoubtedly try to sneak away with more than their fair share, especially in high-asset divorces. If you are trying to unmask him or her, exposing your suspicions can make for a more contentious divorce. In these complex situations, untangling and fairly dividing marital property becomes quite the challenge. To safeguard your rights and financial interests, it is crucial to put emotions aside and tackle this task head-on. You need a skilled Texas high-asset divorce attorney.

How Can I Protect My Assets?

Under Texas law, the court will order that the estate be divided in a just and right manner, keeping in mind the rights of each party and any children. The entirety of your assets is a testament to your hard-earned efforts, and you rightfully deserve what is yours. Unfortunately, there are instances where spouses go to great lengths to retain everything for themselves.

 Here are a few tactics your soon-to-be-ex could use to conceal assets during divorce proceedings:

Texas divides marital assets based on community property laws. This generally means that any asset or property acquired after your marriage will be divided between you and your spouse during a divorce. However, rules and conditions apply, which can help you protect separate property in a high asset divorce. This article explains what that means and how you may safeguard property ownership under unique circumstances. 

What Is Separate Property? 

Any property owned by a spouse before marriage or received individually afterward is considered separate property. 

Texas divorces can be challenging at the best of times, but things become exceptionally tricky when high-net-worth couples are involved. One of the main issues in such high-asset divorces is the discovery of hidden assets.

Hidden assets are funds and properties that one spouse may try to conceal from the other spouse, their attorneys, or the court, in order to avoid losing them during property division.

Often, spouses may transfer these funds and assets to offshore accounts, to hide them from their partner during a divorce. However, an experienced and resourceful Austin high-asset divorce attorney can help find these assets and ensure that their client receives a fair settlement.

Getting a divorce in Texas can be a complex and stressful ordeal, and things become even more complex when it is a high-asset divorce. Division of assets is a common point of contention in a high-asset divorce, especially when it comes to inherited assets.

Of course, you should always consult an Austin complex property litigation attorney or an Austin high-asset divorce attorney for guidance on your individual case.

That being said, let’s discuss how inherited assets are handled in a Texas divorce.