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How to Protect Your Assets During a Divorce in Texas

 Posted on July 27, 2023 in High Asset Divorce

b2ap3_thumbnail_Untitled-73.jpgTexas 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. 

It can include: 

  • Any property owned or claimed by the spouse before marriage 

  • Generational wealth and property which the spouse inherits before or during the marriage

  • Property received as an individual gift 

  • Compensation received from a personal injury lawsuit under the spouse‚Äôs name

While separate property belongs to an individual, some partners may merge accounts, make the other partner a co-owner, or transfer ownership rights to their spouse. This can make things more complex. 

Maintaining complete and accurate documentation of each asset and evaluating its price can help streamline the property division process. It can also help you prove that a specific asset belongs to you and no one else.

 

3 Ways to Protect Your Property During a High-Asset Divorce 

Review Prenuptial or Postnuptial Agreements 

Many couples sign a prenuptial or postnuptial contract to outline property division if they split in the future. While this sounds unromantic, it is a practical approach to deal with divorce if the marriage does not work out. 

If you have signed a premarital or postnuptial agreement, thoroughly review the terms and conditions listed in the contract. Understand the provisions and their implications on the current division of assets. The contract will help you distribute assets based on what you previously agreed to do. 

However, if you or your spouse experience conflict during negotiations, you can take the matter to court to request a judge to finalize the property division. 

 

Evaluate the Family Business 

Business owners must consult a professional evaluator to assess the value of their combined shares, revenue, savings, etc. You may seek legal and financial advice to determine who owns what and how Texas community property regulations will impact the distribution process. 

If you operate a business independently, you may argue that what you earn belongs to you. Yet, Texas law dictates that anything earned or started after marriage will be considered community property. That means you may need to give your spouse a fraction of your corporate assets. 

You can avoid this by giving your spouse a different marital property in exchange for business assets. In some cases, spouses who started a business may continue working together professionally. This allows them to keep their share of the business intact. 

Note that the regulations vary from case to case. Always review the state law before finalizing anything. 

 

Maintain Transparency 

The court may penalize you for misleading them by underreporting your income or hiding assets. Therefore, you must adopt transparency by being honest about your financial transactions. Do not hide assets by gifting them to friends and family or transferring them to secret offshore accounts. Doing so can create problems for you and get you in trouble with the court.

In contrast, if you maintain ethical conduct and present your arguments compliantly, you navigate the legal system better with minimum setbacks. 

 

Contact Travis County High Asset Divorce Lawyers 

Protecting your separate property and business in a high asset divorce can be challenging. You must know the ins and outs of the Texas legal system to retain property rights during the dissolution of marriage. A lawyer can become your legal representative and advocate inside and outside the court. You can ask them for personal guidance and a result-orientated action plan on proceeding in a contentious divorce.  If you need more advice, dial 512-610-6199 to contact Travis County high asset divorce attorneys from Powers and Kerr, PLLC to book a consultation. 

Source

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.3.htm

 

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