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TX high asset divorceDivorce can place financial strain on even the most conscientious and budget-minded person, but is especially common when the couple in question has unique, diverse, or especially valuable assets that are difficult to divide. There are, however, things that couples can do to help them financially prepare for a divorce, while also maintaining their current standard of living. To learn more about the financial consequences of divorce, whether you or your spouse could be eligible for alimony, or how your assets will be divided upon the dissolution of your marriage, please contact one of our dedicated high asset divorce attorneys for advice.

Reviewing Your Financial Needs

When a couple decides to divorce and a court holds a hearing on the issue of temporary spousal support, the judge will require the parties to disclose not only their assets and debts, but also their expenses. When assessing the latter to determine whether to award post-divorce maintenance, courts will assess which of each party’s expenses are reasonable and necessary. This includes the cost of everything from food, clothing, and vehicle expenses to utilities, legal fees, rent, and even entertainment. Having evidence of these expenses from the outset of the case can help the entire property division process go much more smoothly, while also clarifying each party’s specific financial needs going forward.

Cutting Extra Costs

Although it can be difficult to cut items from a budget that one is accustomed to, doing so is often a crucial step in helping divorcing spouses learn to live within their new incomes. In most cases, divorce will have some sort of impact on a divorcing couple’s standard of living, at least in the short term and while courts attempt to mitigate this by equitably dividing the divorcing parties’ property, divorce still almost always comes with a financial effect. Operating within a restructured budget can be instrumental in helping people adapt to their new financial situations, while helping ensure that their standard of living does not drastically change.

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TX divorce lawyerOne of the most difficult components of many high asset divorces involves the division of business assets. Although having a pre or postnuptial agreement can make this process much simpler, not all couples enter into these types of agreements, which means that either a court or the parties themselves will need to decide how any business interests will be split. To ensure that the division of your marital assets, including any business interests, is fair and equitable, please contact an experienced high asset divorce attorney who is well-versed in Texas law and can advise you accordingly.

Is There a Premarital Agreement?

If a couple entered into a premarital agreement and one of the parties already owned a business at the time, then the fate of that company in the event of divorce should have been included in the agreement. In these cases, how the business’ assets will be divided depends on the terms of the agreement, which could mean a number of different things. For instance, the parties might have previously agreed that the entire company would go to one spouse in the event of divorce, or that both would receive an equal share.

Just because a couple did not enter into a premarital agreement before getting hitched, does not mean that they are out of luck when it comes to dividing their business upon divorce, as married couples also have the option of entering into postnuptial agreements that account for these types of assets.

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TX divorce lawyerThere are a number of issues that couples must address before a court will finalize their divorce, one of which is how their marital property, or the assets that were acquired during the marriage, should be divided. Under Texas law, divorcing couples must divide their marital assets in a fair and equitable way, an endeavor that is only possible if the parties have a thorough understanding of the current monetary value of the assets in question, which can vary significantly depending on the date that is chosen for valuation.

Determining an asset’s valuation date can be a difficult and often contentious process, so if you and your spouse have decided to file for divorce and own unique or valuable marital assets, it is important to contact an experienced high asset divorce lawyer who can ensure that those assets are properly appraised and divided fairly upon the finalization of your divorce.

Establishing Value

The valuation of marital assets can be established in a number of different ways, including by:

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TX divorce lawyerFor couples who are going through a high asset divorce and who also own unique or particularly valuable assets, property division negotiations can be one of the most complex parts of the entire divorce process. Whether an asset falls under the category of a personal possession, a business asset, real property, or another type of asset, its purchase date will have an extremely important impact on how it is divided upon divorce. For this reason, most couples who are going through a high asset divorce are strongly encouraged to carefully evaluate and separate marital property from assets that were accrued prior to marriage.

To ensure that this task is manageable for both parties, couples in this position may want to consider creating a marital property checklist, a tool that often proves invaluable to divorcing parties who are concerned about coming up with a fair and equitable property division settlement. Unfortunately, creating this type of list can be difficult, so if you and your spouse have decided to file for divorce, it is important to contact an experienced high asset divorce attorney who can help protect your interests.

What to Include on a Marital Property Checklist

In an effort to keep the property division process as organized as possible, many divorcing couples choose to create a list of all the marital property that must be divided. Most marital property checklists contain at least four categories of assets, including:

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TX divorce lawyerIt is not uncommon during a divorce for the parties involved to get so caught up in the emotional aspects of dissolving their marriage that they fail to focus on coming up with a property settlement that serves the best interests of both spouses. This can end up costing both parties a significant amount of time and funds, while also making it much more difficult to prepare for post-divorce life. In fact, divorcing spouses may not even realize the full value of the marital assets that they are surrendering to the other without any attempt at negotiation. This is especially likely in situations where one or both spouses own unique assets, such as collectibles that are hard to put a price on, but could be extremely valuable. For help ensuring that this doesn’t happen to you, please contact a member of our dedicated high asset divorce legal team for assistance.

Valuable Collectibles

Although when many people think about valuable collectibles, they imagine antiques or coin collections, the reality is that there are a number of different kinds of valuable assets that a person can collect that fall under this category, including wine, jewelry, and art. In other cases, a person’s collections may only be of interest to a certain group of collectors. However, that doesn’t mean that these types of items don’t have value. In fact, odd items, such as antique medical devices can bring in large sums on auction websites, where collectors from all over the world can search for particular rare collectibles.

Marital Assets

Collectibles, like any other type of asset, is considered community property when it is obtained during the course of a marriage, and as a result, will be subject to the state’s marital property distribution laws. Many find it difficult to part with collectibles purchased or received during marriage, so it is often in these individuals best interest to use these items as leverage in a trade-off for another asset that the other spouse would rather receive.

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TX divorce lawyerWhile most people assume that one of the most difficult aspects of divorce is coming up with a child custody arrangement that meets the needs of all parties or learning to co-parent with one’s former spouse, the reality is that dividing marital property is actually one of the most time-consuming aspects of any divorce. This is especially true for high asset divorces, where couples have significant, diverse, or unique assets that are difficult to inventory, appraise, and divide. Furthermore, while not all divorcing couples have children, most will have at least some assets that need to be divided before a divorce can be finalized. For this reason, it is critical for those who are considering divorce, to contact an experienced high asset divorce attorney who can explain the property division process and ensure that their rights and interests are protected.

What Is Equitable Division?

Texas is a community property state, which means that all of a couple’s marital, or community property, must be divided equitably upon divorce. While in many cases, this could take the form of an equal division, it could also result in one spouse receiving more assets than the other, especially if one of the spouses is receiving alimony. Assets that often fall under the category of marital property include:

  • The family home;
  • Real estate;
  • Vacation properties;
  • Retirement plans and benefits;
  • Vehicles;
  • Jewelry;
  • Antiques;
  • Artwork;
  • Personal possessions;
  • Bank accounts; and
  • Investments.

While dividing a couple’s bank accounts equally between two parties may be a relatively simple feat, dividing other assets, such as vehicles and personal belongings is much more difficult. When it comes to selling the family home, for instance, couples are usually required to engage in a complex process that involves:

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TX divorce lawyerWhen considering divorce, many couples go into the property settlement process with the expectation that they will be required to parcel out certain personal possessions, decide who will retain the family home, and divide up the contents of any bank accounts. However, this task becomes much more difficult for couples with unique or costly assets, such as fine artwork, which can be difficult to appraise. Fortunately, the advent of digital valuation tools has made this process simpler, although divorcing couples are still encouraged to obtain an in-person appraisal from an expert before going forward with the property division process. To learn more about the different methods of asset appraisal available to you, please contact an experienced high asset divorce attorney who can advise you.

Appraisal Factors

Appraising fine art tends to be difficult, as it can actually have a number of monetary values. These values are determined primarily by assessing the market in which the work was sold or is to be offered for sale, which includes galleries, auctions, and art fairs. Appraisers then evaluate the data derived from sales of comparable items in similar galleries to determine a rough approximation of a piece’s value.

When selecting artwork with which to compare a piece, appraisers consider a variety of factors, including:

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Texas divorce lawyerMany couples who decide to get divorced have not even heard of the acceptance of benefits doctrine and so don’t know that it could play a significant role in their divorce proceedings. According to this doctrine, litigants are not permitted to accept the benefits of a property settlement and then later decide to challenge it. The only exception to this rule is when the litigant can provide proof that the ruling should be overturned due to special circumstances. This is a difficult task, so if you formerly accepted a property settlement, but later decided to challenge it, you should strongly consider contacting an experienced Round Rock high asset divorce attorney who can explain your legal options.

What Is the Acceptance of Benefits Doctrine?

Just last year, the Texas Supreme Court grappled with the acceptance of benefits doctrine in the case of Kramer v. Kastleman, which involved a couple who had signed a property settlement agreement prior to their divorce. The judge later orally approved the agreement and granted a divorce, although he didn’t issue a written decree until almost a year later. However, before the written decree was issued, the wife rescinded her earlier agreement to the settlement, arguing that her former husband coerced her signature and so committed fraud.

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