Why Dividing Property Takes Time in a High Asset Divorce

 Posted on January 30, 2019 in Complex Property Litigation

While 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:

• Obtaining a fair appraisal of the property’s value;
• Taking into account the balance of the mortgage; and
• Considering the cost of utility expenses, property taxes, and maintenance.

After assessing these factors, a couple may decide that is it is in the best interests of the family:

• To sell the property and divide the proceeds equally;
• For one of the parties to retain sole ownership of the home and take responsibility for paying off the rest of the mortgage;
• For one of the parties to buy out the other spouse’s interest in the home; or
• For one of the spouse’s to refinance the home and take responsibility for the mortgage.

Vehicles come with similar options, as one spouse could agree to pay the other half of the value of the vehicle and retain it for his or her personal use, sell the vehicle outright and split the profits, or allow one spouse to retain the asset in exchange for another. Engaging in this process for each asset can take a significant amount of time, making it especially important for those who are going through a divorce to retain an experienced attorney at the outset of the proceedings.

Call Our Williamson County High Asset Divorce Legal Team Today

Please call Powers and Kerr, PLLC at 512-610-6199 to learn more about your own rights and obligations during the divorce process from an experienced Round Rock high asset divorce lawyer. We are eager to assist you throughout each step of your case.

Sources:

https://guides.sll.texas.gov/community-property

https://www.baylor.edu/law/facultystaff/doc.php/301687.pdf