What You Need to Know About Dividing Valuable Assets in a Texas Divorce

 Posted on December 07, 2020 in High Asset Divorce

Getting a divorce can be a difficult and laborious process for any couple, but it can be especially complicated for those who have a high net worth. In these cases, spouses will likely need to address multiple different types of high-value assets, and complex property litigation may be needed to ensure that spouses each receive an equal share of their marital assets. A skilled divorce attorney can help you understand how different types of property should be addressed as you work to complete the process of dissolving your marriage.

Division of Community Property

In Texas, all assets that a couple acquires during their marriage are considered community property, and each spouse should receive an equal share of the marital estate. Some types of high-value assets that may need to be addressed during divorce include:

• Real estate - A couple’s primary marital residence, vacation homes in the state of Texas or other states or countries, and any other real estate property should be appraised to determine their monetary value. Spouses should be sure to understand whether they will be required to pay capital gains taxes on any property sold during or after divorce.
• Investments - Spouses may own stock options, foreign bank accounts or investments, retirement funds, pensions, or other complex financial assets. A forensic accountant can review these assets to determine their full value so they can be properly divided during divorce. When dividing retirement assets, QDROs should be used to avoid taxes and penalties.
• Business interests - If either spouse is a business owner, operates a professional practice, or has an ownership share in a family business, a business valuation will need to be performed to determine the present and future value of the business. This can ensure that business interests will be considered properly when dividing marital assets.
• Valuables and collectibles - Spouses may own items such as artwork, jewelry, designer clothing, sports memorabilia, or other property that may have both a monetary and sentimental value. Appraisals should be performed on these assets to determine their actual worth.
• Inheritances - An inheritance received by a spouse either before or during their marriage will typically be considered separate property rather than community property. However, inheritances may become commingled with other assets, making it difficult or impossible to distinguish these funds from other marital property. In these cases, assets that were inherited may be converted from separate property to community property.

Contact Our Austin High Net Worth Divorce Lawyers

At Powers and Kerr, PLLC, we have represented spouses in divorce cases involving a wide variety of different types of complex assets. We can ensure that you address these matters correctly, and we will fight to protect your financial interests and help you reach a positive outcome for your case. Contact our Austin, TX high-value property division attorneys by calling 512-610-6199.

Source:

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