Inappropriate Behaviors to Avoid in a Texas High Asset Divorce

 Posted on October 20, 2022 in Complex Divorce

Divorce can get ugly, especially when the couple has a high net worth. If the relationship between the two spouses has become contentious, then one or both may feel that they deserve the majority share of the marital estate, despite the fact that Texas follows the community property method of asset and property division in divorce. And although it may be tempting to take certain steps to ensure that you get the majority share, it could result in some serious sanctions by the court if those steps are discovered. The following are some of the things you should avoid in your high asset divorce.

“Shopping” for an Attorney

When you are going through a divorce, you want to make sure you have a skilled attorney advocating for your best interests. It is not uncommon – in fact, it is recommended – that you meet with a couple of attorneys to make sure that you find one that you are comfortable with and that is qualified to meet your legal needs. However, what is not acceptable is meeting with multiple attorneys in order to prevent your spouse from also retaining a qualified attorney.

When you meet with an attorney for that initial consultation, they will be asking you private details about your case, including both personal and financial. Under the law, every attorney is bound by attorney/client privilege. This includes attorneys who you share information with during consultations, even if you never end up hiring them.

In some difficult divorces, one spouse has consultations with the top attorneys in the area, creating the attorney/client privilege standard, in an effort to prevent the other spouse from obtaining qualified representation.

Hiding or Undervaluing Assets

One of the most common tactics for preventing a fair divorce asset distribution is to either hide assets or undervalue their worth. This tactic is frequently used when one of the spouses owns a business. When it is suspected that a spouse is guilty of this tactic, your attorney will likely recommend hiring a forensic accountant who is trained in uncovering financial wrongdoing.

College Funds

If a couple going through a high asset divorce has children, they often have 529 plans set up for the children’s college education because of the tax advantages the plans provide. A spouse trying to hide assets may use the plan, depositing significant cash in the account, only to withdraw it after the divorce is final.

Contact a Travis County Complex Asset Division Attorney

If you are going through a high net-worth divorce, make sure you have a seasoned legal advocate fighting for you. Call Powers and Kerr, PLLC at 512-610-6199 to schedule a confidential consultation with one of our dedicated Austin, TX high asset divorce attorneys.

Sources:

https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html

https://www.smu.edu/ola/briefingpapers/attyclientprivilege2