High asset divorces in Austin, Texas are different from other divorces in many different ways. One significant distinction is that high net worth divorces almost always involve various types of complex property that must be classified and, in many cases, divided between the spouses according to Texas community property laws. If you are planning to file for divorce, or if you are in the early stages of your Austin divorce, you may already know that Texas is what is known as a “community property” state. Accordingly, most property acquired after the date of marriage will be classified as community property, and it will be divided between the spouses in a manner that the court determines to be “just and right.”

Classifying and dividing certain types of property can be extremely complicated, however, and high net worth divorce cases usually involve a substantial amount of complex property. The following are some of the common types of complex property that you may need to consider in your Texas divorce. And if you need assistance, you should know that an aggressive Austin high asset divorce attorney can represent you.

Rare Art, Books, Music, Artifacts, and Other Collectible Items

In Austin, many married couples share a home full of interesting collections, such as local art, rare books and music, and other artifacts. Collections made up of objects like these can be complicated to classify and divide in a divorce for many reasons.

Although some couples quickly follow up the decision to end their marriage with a divorce filing, it is also not uncommon for couples to carefully consider this option over a period of weeks or months before officially filing for divorce. Those who take the latter route have the benefit of extra time in which to plan for the termination of their marriage, which can make all the difference in how smoothly the later divorce actually proceeds. This is especially true for couples who have unique or particularly valuable assets, as accounting for, appraising, and ultimately dividing these assets can take a significant amount of time. To learn more about how an experienced high asset divorce attorney can help you plan for your own pending divorce, please contact our legal team today.

Planning for Alimony

As a result of changes made to the tax code last year, divorced spouses who pay alimony are no longer permitted to deduct those payments come tax season, while spouses who receive these payments can no longer count those payments as income. Knowing how, and planning for, these changes will affect a couple’s own financial situation after divorce is important to the success of the negotiation process. For instance, divorcing couples who properly plan before litigating a divorce could redistribute their assets in such a way that they are able to regain some of what they will lose as a result of the new alimony legislation. The spouse, for example, who is the higher earner could retain the couple’s taxable assets, such as cash, stocks, and bonds, while the lesser earning spouse could retain the tax-deferred accounts like 401(ks) and IRAs.

Accounting for and Appraising Assets

Couples who own extensive, unique or especially valuable assets usually have a more difficult time accounting for, characterizing, and appraising all of those assets. Beginning this process ahead of time can help couples avoid some of the stress that goes along with dividing up a marital estate. Hiring a forensic accountant and other financial specialists can also play a crucial role in ensuring that no assets are improperly appraised or are unaccounted for during the property division process. Compiling documentation related to ownership and value can also be accomplished in the planning stage, which can save time later on in the proceedings.

Cryptocurrency, or virtual currency, has existed in one form or another since 2009, but has become a much more mainstream investment over the last few years. While it is true that investing in cryptocurrency can be a lucrative endeavor, it can also make for a difficult and lengthy property division process for couples who later decide to divorce. For instance, it is becoming increasingly common for one spouse to use cryptocurrency as a means of hiding assets from the other during the divorce process.

Fortunately, there are ways to prevent this type of behavior, which is unlawful under Texas law, so if you and your spouse have decided to file for divorce and you have questions or concerns about how your marital assets will be divided, you should strongly consider contacting an experienced high asset divorce lawyer who can ensure that you reach a fair and equitable settlement.

Tracing Cryptocurrency

As stated earlier, cryptocurrency is virtual currency that exists only online and is traced on an encrypted ledger that details all transactions. Unfortunately, it is the very nature of cryptocurrency that makes it an ideal means of hiding assets, as it tends to be difficult to trace and hard to value. Divorcing spouses are required to disclose all of their assets and liabilities at the outset of proceedings and while many are forthright in these disclosures, some are not so scrupulous. Cryptocurrency is the perfect vehicle for many of those who fall under the latter category.