Making sense of dividing assets can be bewildering, even in the most straightforward circumstances, nonetheless during a toxic divorce. Many people think that choosing a divorce lawyer is the hardest part. Investment portfolios, business interests, and multiple real estate holdings make the task even more complex. Furthermore, the community property laws in Texas add another layer to unravel.
So, let’s start to take this knot apart together. Read on to discover more about the state laws and procedures that may come into play. Your first step towards an equitable asset division starts here.
The Role of Community Property Laws in Texas
Texas is one of nine states that use community property laws for divorces. As a result, it is unique in how it views equitable distribution. Most assets and debts belong to the spouses, regardless of who earned or spent the money. This fundamental principle has a far-reaching impact on how your case proceeds.
Generally, you can expect a 50-50 split unless the circumstances warrant a different arrangement. However, several factors can complicate the process. For example, separate property acquired before the marriage remains with the individual who owns them. Distinguishing between these items and what qualifies for joint ownership can lead to heated debates.
Types of Complex Properties
Real Estate (commercial properties, multiple homes)
The complexities often escalate when a couple has robust real estate holdings. Each property has challenges, like mortgages, property taxes, and ongoing business operations. Moreover, the emotional attachment to a family home or the strategic value of commercial property complicates the willingness to sell or divide them.
An experienced divorce lawyer in Texas will typically enlist the help of real estate appraisers. They work with these professionals to accurately assess the value and income potential. This effort encourages a fair division and can serve as a robust foundation for negotiation.
Business Interests (partnerships, LLCs)
Dividing partnerships and LLCs is an intricate aspect of property division in a Texas divorce. Community property laws entitle spouses to share the company, even if only one has direct involvement. Therefore, a simplistic 50-50 split rarely does justice to both parties.
Divorce attorneys approach this task by hiring forensic accountants and business evaluators. These professionals scrutinize financial health, value, and growth potential. This multi-disciplinary approach aims to develop a division strategy that respects business integrity and equitable shares.
Investment Portfolios
Investments come with varying degrees of risk, liquidity, and growth potential. Accordingly, an even split based on current market value could be unfair. For instance, one spouse may receive high-risk stocks while the other receives income-generating bonds.
Legal counselors may involve financial advisors to assess the portfolio. This examination helps them carve a settlement that balances the current value with their future impact.
Inheritances and Gifts
These items introduce unique complexities into the equation. Contrary to popular belief, these do not have automatic shielding under Texas law. Inheritances and gifts are often separate property, but they can get commingled with community assets. One example would be placing an inherited sum into a joint bank account and using it to buy a family home.
Tracing the origin and use of these assets is a vital task for a divorce lawyer. They work to establish the characterization of separate or community property. Identifying the nuances is essential because it can profoundly influence the final allocation.
Other Special Assets (antiques, artwork, collectibles)
Some assets that hold financial and emotional value make their division more challenging. They can be tricky to value accurately due to their nature, fluctuating markets, or historical significance. As a result, accepting a 50-50 share is not enough in many circumstances.
Your divorce lawyer in Texas may ask appraisers or art historians to establish a fair market value. The goal is to achieve a division that respects financial worth and sentimental attachment.
Uncovering Hidden Assets
Transparency is the name of the game for property division in Texas. However, the reality is that some spouses may attempt to hide assets to skew the process in their favor. Undisclosed bank accounts, shell companies, and valuables in a safety deposit box are a few avenues someone may take.
Uncovering hidden assets is an art and a science. It requires combing through financial statements, tax returns, and even social media posts for discrepancies. Additionally, legal tools like subpoenas, temporary orders, and depositions can compel disclosure.
Hiding marital assets is not only unethical. It can also be illegal under Texas law. It leads to penalties and even a revised property division unfavorable to the offender. Therefore, if you suspect your spouse hid assets, it is crucial to act swiftly.
Find a Divorce Lawyer in Texas to Ask Questions
Getting through complex property division in a divorce is no small feat. Understanding community property laws and accurately valuing your assets have challenges and legal implications. While this guide offers an overview, the unique nature of your marital estate deserves specialized advice.
Take control of what happens next by getting a referral to a divorce lawyer in Texas. Our representatives are available 24/7 at (866) 345-6784 or by completing our online submission form.
