More Common Examples of Complex Property in a High Asset Divorce in Texas

 Posted on June 09, 2020 in Complex Property Litigation

When you are in the early stages of planning for a high asset divorce in Texas, you should know that you will likely be facing a divorce involving the classification, valuation, and distribution of many different types of complex property. We have told you about some common types of complex property in an Austin high net worth divorce, including valuable collections of art and books, as well as business holdings and investments. Yet these are not the only types of complex property that will need to be divided in most Texas high asset divorce cases. We want to tell you about some more common types of complex property that may need to be evaluated in a high net worth divorce.

Keep in mind that Texas is a community property state, which means most property acquired after the date of marriage will be considered community property and thus will be subject to division. If you have questions or concerns, you should speak with an aggressive Austin high asset divorce attorney today.

Real Estate and Vacation Homes

Valuing real estate, especially vacation homes in different states or different countries, can be complicated. In general, if the property is classified as community property, a Texas court will handle the property like any other property the married couple owns in Austin. However, it is important to point out that real estate in other states, and especially in other countries, should be identified early on in the divorce process since one of the parties may attempt to conceal international property.

Commingled Property

Commingled property, or the mix of separate and community property, is often among the most complicated to classify and value depending upon the specific factors concerning the property. In some situations, it is relatively straightforward to sort out separate and community property. In other situations, this is a much more complicated process.

Appreciation of Separate Property

Generally speaking, the passive appreciation of any separate property in Texas will typically be classified as separate property and will not be subject to distribution. Passive appreciation refers to an increase in value that was not based on any actions taken during the marriage to result in that increase in value. For example, a spouse might have purchased a painting long before the marriage and may have kept it in storage for the length of the marriage without ever touching it. In that time, the market value for that particular artist’s work may have skyrocketed, and the painting may be worth substantially more than it was when the party initially purchased it. In such a situation, it did not increase in value because of anything the party (or his or her spouse) did to lead to its increase in value.

However, when property appreciates or increases in value because of actions taken during the marriage, the value of the appreciation may be classified as community property. For example, if Spouse A owned an investment prior to the marriage and asked his or her spouse about ways to improve the value and Spouse A took those recommendations, the increase in value could become community property.

Contact a Texas High Net Worth Divorce Lawyer

If you have questions or need assistance with property division in your divorce, a skilled Austin high asset divorce attorney can help. Contact Powers and Kerr, PLLC online or call our firm at 512-610-6199. An experienced complex child custody attorney or complex litigation attorney at our firm can also assist with other aspects of your high net worth divorce in Austin.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.6.htm