High asset divorces in Texas are complex for many reasons, from community property that is of high-value and difficult to properly appraise to hidden assets. We often think of hidden assets as specific property, both tangible and intangible, that one spouse might try to conceal from the other spouse and from the court. For example, hidden assets often include out-of-state or overseas bank accounts or investments, business holdings, and even real estate. Yet another form that asset hiding can take is when the higher-earning spouse attempts to conceal his or her actual earnings. Income must be reported accurately to the court. If a spouse does hide the full amount of his or her income, Texas law allows the court to award the other spouse a higher amount of the community property. The spouse who hid assets can also face additional penalties.

If you do not know your spouse’s actual income and are preparing for a divorce, it is essential to work with an aggressive high asset divorce lawyer in Texas who can assist you. The following are some of the ways that you and your attorney can determine your spouse’s actual income.

Locate Tax Returns

If you have access to previous tax returns, especially if you filed jointly with your spouse, it is important to get copies of those tax returns as soon as possible. Your jointly filed tax return can allow you to determine your spouse’s reported income for those years. If you are married filing separately and may have access to both of your tax returns, you should make any copies so that you will have this information.

When you are meeting with attorneys and deciding how to proceed with your Texas high asset divorce, it is incredibly important to ensure that you have the right advocate on your side. While there are many different law firms that may do work in family law, it is essential to hire an experienced Austin high asset divorce attorney who has particular experience working on high net worth divorce cases and ensuring that high asset divorces are handled as smoothly as possible. You also want to be certain that you have an attorney who understands your particular needs and will tailor any legal strategies to fit the facts of your specific case. When you are in the early stages of planning for a high asset divorce, the following are some of the questions you should ask potential attorneys with whom you schedule consultations.

Do You Handle High Asset Divorce Cases?

As we mentioned above, it is imperative that you hire a Texas divorce attorney who has extensive experience handling high asset or high net worth divorce cases under Texas law. Although many different family law attorneys in the Austin, TX area may have experience representing clients in divorce cases, high asset divorces have a wide variety of specific issues that may not arise in a divorce involving middle-class couples.

Can I Speak with Satisfied Clients or Read Testimonials?

Your Texas high asset divorce lawyer should always be willing to provide you with information about successes and satisfied clients. In some cases, a lawyer may be able to put you in touch with previous clients who were satisfied with the outcome of their high net worth divorce, and who can speak to the attorney’s experience handling cases similar to your own. For other law firms, it may be possible to have access to testimonials from previous clients.

If you were the primary earner in your household during your marriage, and if you also have substantial separate property (as a result of earnings prior to the marriage or a family inheritance, for example), it will be important to think about how you can protect your credit and your financial profile after a high asset divorce in Texas. Even if your soon-to-be ex-spouse does not intentionally make bad financial decisions after the divorce, some of those poor financial decisions could impact your credit if you do not take specific steps ahead of time.

As you may know, Texas is a community property state. As such, most property acquired after the marriage will be classified as “community property,” as opposed to “separate property,” and it will be divisible between the parties. You may be thinking that you do not need to worry about your spouse harming your credit or financial profile since your spouse will receive a substantial amount of community property. However, if your spouse does not have much experience handling financial accounts and assets, that money may go quickly. The following are some recommendations for protecting your credit after a high asset divorce in Texas. If you have additional questions, a Texas high asset divorce lawyer can help.

Close Joint Accounts

If you have joint accounts of any type with your spouse, you should close them. Even if closing joint accounts requires significant work, ensuring that your ex-spouse will not have access to any of your accounts can be worth it in the long run. If you do not close joint accounts, even if your spouse knows that he or she no longer owns the assets in a particular account, your ex could still attempt to use the account to his or her benefit.

When you are starting to think about filing for divorce in Texas and you own substantial assets, you may be thinking about how the community property rules in Texas will result in the majority of your assets being divided between you and your spouse. Accordingly, you may be wondering whether it makes sense, or whether it is actually worth it, to hire a Texas high asset divorce lawyer in your case. You might have heard of friends who went through a divorce process on their own and were able to work out a marital settlement agreement through communication with their spouse. While there are occasionally situations in which a couple can go through a divorce relatively easily without an attorney, it is not advisable to handle a high net worth divorce on your own.

In high asset divorces in Texas, the parties will be dealing with particularly complex and valuable property, and there is significantly more money at stake. Even if you have a relatively amicable relationship with your spouse now, and she or he promises to be fair, you should know that the process can quickly become contentious if you cannot actually reach an agreement. There is also a possibility that your spouse could be concealing assets from you. The following are just some of the reasons it is essential to have a lawyer during your high asset divorce.

Locating Hidden Assets

High net worth divorces can sometimes involve hidden or concealed assets. Our firm can help to ensure that all community property is identified and classified. If necessary, we can work with you and a forensic accountant to locate any property that your spouse may be concealing.

If you are planning to file for divorce in Texas and you know that you and your spouse have not reached an agreement about how your assets will be divided, the prospect of property division can be anxiety-inducing and complicated. Dividing assets is especially complex in high asset or high net worth divorces, where married couples own substantial amounts of valuable property in many different forms. In such cases, those parties may want to take steps to prevent the court from making the final decision about how their community property will be divided. You may know that divorcing spouses can agree to a property settlement agreement in which they determine how their community property will be divided.

However, if you are involved in a contentious separation or divorce with your spouse, you may be wondering how you could ever get to the point of reaching a property settlement agreement. Family law mediation may be beneficial. We want to tell you more about how mediation can help in such cases, and to emphasize that an experienced Texas high net worth divorce lawyer can assist with your case.

Mediation Can Cost Less Money in the Long Run

For couples expecting a high net worth divorce, mediation can be particularly helpful because it can allow the parties to save a significant amount of money that otherwise would be spent on court hearings in which the court must classify property as separate or community property, value it (which can be particularly time-consuming and complicated for the variety of assets held in high asset divorces), and distribute the property according to Texas law. With mediation, the spouses may be able to reach an agreement on a shorter timetable and at less cost.