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TX divorce lawyerDivorcing couples with unique, diverse, or especially valuable assets face a host of unique issues. For instance, many high asset divorces require couples to decide the fate of multiple properties, including not only the family home but also vacation homes and investment properties. This can be a complicated process, so if you are going through a divorce and have been unable to come to an agreement about who will retain ownership of one or more vacation properties, it is important to contact an experienced high asset divorce attorney who will aggressively represent your interests, whether during negotiations or in the courtroom.

How Are Assets Categorized During Divorce in Texas?

Texas is a community property state, which means that only assets that were acquired during a marriage must be divided in the event of divorce. When it comes to real estate, this is true regardless of whose name is on a title or deed. Unlike community assets, separate property is any property that was owned by either spouse before the marriage took place. The only exceptions to these rule apply in cases of inheritance, in which case, a person’s assets can be considered separate property even if they were acquired during the marriage.

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Posted on in High Asset Divorce

Texas divorce lawTexas law requires that divorcing couples divide their property in an equitable manner. However, this rule only applies to marital property, as separate property will remain under the sole ownership of the original holder. Inheritances, for example, are considered the separate property of the person to whom they were bequeathed, even if they were given to one spouse during a marriage. In some cases, it is still possible for another party to retain a portion of one spouse’s inheritance, so if you were given a valuable gift or inherited property from a loved one during your marriage and you are now going through a divorce, please consider speaking with a high asset divorce attorney who can help you protect your assets.

Separate Property

Under Texas law there are three types of assets that qualify as separate property:

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Texas prenuptial agreement attorney, Texas complex litigation lawyerNo couple wants to consider the possibility that their marriage will end in divorce. However, it is often in the best interests of all parties to take precautions for this possibility by drafting a prenuptial agreement that will govern how property will be distributed in the event of a divorce. A couple who does not create a prenuptial agreement risks an unfair division of marital property during dissolution, so if you are considering marriage and have questions or concerns about drafting a prenuptial agreement or if you already have one in place and are pursuing a divorce, it is critical to contact an experienced complex divorce attorney who can explain your legal options.

The Contents of a Prenuptial Agreement

Prenuptial agreements can go a long way towards giving couples peace of mind regarding property division and alimony. However, only certain issues can be covered in prenuptial agreements, including:

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Texas high asset divorce attorney, Texas complex property litigation attorneyDivorces are notorious for being time-consuming, emotionally draining, and financially taxing. Unfortunately, in Texas, this is often exacerbated by the unique legal process required to divide community property. In many cases, most of a couple’s assets fall under the category of community property and an unfair division could be devastating, so if you or a loved one is considering a divorce, it is vital to speak with a complex property litigation attorney who is familiar with the process and will aggressively represent your interests.

Separate Property v. Community Property

The Texas Constitution specifically defines separate property as any property that was:

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Texas divorce attorney, Texas complex litigation lawyer, Texas is one of only nine community property states in the Union. The concept originally comes from Spanish law, and was adopted by Mexico in the 19th century and passed onto its possessions in what is now the modern-day United States. The idea is that marital property belongs to both spouses upon divorce, due to the emotional and financial nature of a marriage. Some states have very strict community property laws (in California, a 50-50 split is mandatory), but Texas has a community property presumption in Chapter 7 of the Family Code. Like most all presumptions, this provision can be overcome in certain high-asset divorces.

Identifying Property

The presumption applies to all property that was acquired during the marriage, unless it was a gift. This dividing line is not always clear, because property is often commingled. Assume that Husband bought a car before the marriage (separate property) and makes the payments from his paycheck (community property). Or assume that Wife inherited a rental house (separate property) and used proceeds from a second mortgage on the marital residence (community property) to fund improvements.

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Texas complex litigation, Texas divorce laws, Texas high asset divorce attorney,Texas law requires that the property division in a high-asset divorce be a "just and right" division of the estate. Generally, such a division is made along an even or fairly even basis. But that is certainly not always the case, and both parties should be prepared to present a compelling case that protects their individual legal and financial interests, both in the short and long terms.

Property division is further complicated by Texas' rather narrow spousal maintenance law. In many other jurisdictions, long-term alimony that is designed to balance the standard of living between the two spouses is at least an option. But that is not the case in Texas, unless the payee spouse has a permanent disability or some other impairment, is the custodian of a minor disabled child, or has been the victim of family violence.

What to Divide

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Texas high-asset divorce attorney, Texas complex litigation lawyer, complex property negotiations,The marriage dissolution rate for these couples has doubled in the last twenty years. These "gray divorce" matters are often the epitome of a high-asset divorce. While there may be no complex child custody issues to resolve, the property division can be a Gordian Knot of separate assets, community assets, and commingled assets.

Aging baby boomers were the first demographic group to divorce in significant numbers. Many of these people are now in their second or subsequent marriage, and the fact that the divorce rate is significantly higher in these relationships may partially explain the gray divorce phenomenon. In one study, the authors pointed to unique later-in-life issues — such as the empty nest syndrome, declining physical health, and ailing parents — which can put added strain on a relationship.

The study predicted that gray divorce would increase even if the overall divorce rate remained flat, due to the aging American population.

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complex accountingQuite often, asset and property division involve complex accounting measures in high-asset divorce cases.

Assume that Husband owned an investment portfolio prior to the marriage. Initially, he only contributes funds from his separate bank account. As time passes, however, both Husband and Wife begin investing money, and sometimes these funds come from a Wife's separate bank account.

Also assume that Wife owned a rental house prior to the marriage. The couple subsequently elected to take out a second mortgage on the marital residence and use the proceeds to renovate the rental property. Before the renovations, the house was essentially un-rentable and borderline uninhabitable. Since the renovations, the house has been continually occupied by a responsible tenant who pays market-rate rent.

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8911 N. Capital of Texas Highway, Building 2, Suite 2105, Austin, TX 78759