High asset divorce cases typically involve couples with property worth a million dollars or more. In these cases, there can be complex financial issues that call for the counsel of skilled professionals who collaborate with family law attorneys.
In any divorce case, the Texas Family Code demands that the couples share their community property between themselves fairly, but not necessarily equally. Community property constitutes all assets acquired by the couple during the marriage period. Separate property, on the other hand, is all possessions and debts that each spouse had before getting married. Such items are not subject to sharing.
About Community Property Division in Texas
Possessions such as gifts and inheritance to a spouse or compensation for personal injury fall under the separate property category. However, funds from lost wages due to an accident which occurred after one got married are community property. When a couple owns a business, and one spouse contributes more in its growth than the other partner, that party may be eligible for a greater share of the enterprise assets. However, these are all complicated issues that require careful analysis. Financial experts such as CPAs can assist in the review of business operation agreements and the valuation of investments, cash, and goodwill to assign a fair share to each spouse. Further complications may arise if the couple has offshore accounts or estates in foreign countries. Laws and regulations in different republics could result in unforeseen challenges in the resolution of a high net worth divorce.
These are some financial and legal matters which relate to high asset divorce cases.
- Business matters – Business asset valuation, partnership agreements, and stock option agreements
- Property issues – Property ownership, safe deposit boxes, property in foreign nations, vacation homes, and secured property
- Estate planning matters – Trust and estate agreements, retirement funds, and inheritance issues
- Tax issues – Tax liabilities, tax loss carryforwards, and timing of tax transactions
The litigation process for the division of high-value marital property can raise concerns to clients considering that both the spouses have devoted much of their lives to building their wealth. It is the role of a divorce attorney to sort out these issues and protect the rights of each client.
If you have questions about community property division, do not hesitate to contact an experienced family law attorney.