Figuring out who gets what in a divorce is already difficult enough. When a couple has valuable property or assets to divide, things can become more complex. In Texas, a high net-worth divorce constitutes a separation where the couple has many assets, such as businesses, real estate, luxury goods, or over $1 million in liquid assets.
However, there are strategies to help improve this process. Michelle Purvis Law can explain the high-net-worth divorce process, as well as offer suggestions for successfully dividing assets.
Property Division in Texas
The state of Texas presumes that all property is community property when entering the divorce process. Community property refers to the shared assets acquired by the couple during the marriage. However, spouses can also have their own property within the marriage, which is known as separate property.
In a high net-worth divorce, much of the shared property you and your spouse acquired during your marriage may be considered high-value. The marital home, savings accounts, vacation properties, investments, and more can constitute shared property in the divorce. However, when there are multiple significant assets at play, there are problems that can arise.
Problems in High Net-Worth Divorce
One issue that often arises in a high net-worth divorce is the concealment of assets from one spouse. Sometimes, individuals will hide property, hoping that their spouse will not find it, meaning that the property will become theirs after separation. Concealing property is not uncommon in a community property state, such as Texas.
However, hiding assets or property is illegal during a divorce. An experienced attorney can help you uncover any hidden assets in the marriage. If you fear this is happening during your marriage or separation, there are ways to manage assets to ensure that each party leaves the divorce satisfied.
Pre-Marital and Post-Marital Agreements
One way to avoid any extra asset-related drama is to draft a pre-marital or post-marital agreement. These documents can help delegate what properties are separate or community within the marriage. If this is done ahead of time, you will spend less time in the courtroom arguing over the state of your property.
Furthermore, you should work with an experienced attorney during the preparation of an agreement. Not only can they help negotiate assets with your spouse, but they can also guide equitable distribution. An attorney can also help shift community property into separate, ensuring that individuals get their most essential assets without subjection to division.
When There Isn’t a Marital Agreement
However, not everyone goes through the steps of creating a pre or post-marital agreement during their marriage. While this may hinder the property division process, there are other ways to determine if a property is community or separate. Your attorney can assist you with hiring a third party who can help you uncover and trace hidden assets like bank accounts, homes, cars, and more. This tracing will help determine whether the property is community or separate.
The Bottom Line in Texas
When going through a high net-worth divorce, one of the best options for success is to retain an attorney to assist in the property division process. Furthermore, an attorney can step in before separation even occurs, drafting an agreement that dictates what type of property each asset is. Attorneys also play a role in the tracing process, determining the funds utilized in purchasing items within the marriage.
Perhaps the most important role an attorney can play in this process is an objective third party. They can assess your property with a non-biased lens, helping you understand the division process. You may feel that the process has been unfair to you and that you are not getting everything you deserve. However, an attorney can step in and explain how and why specific properties are delegated to your ex-spouse.
At Michelle Purvis Law, our attorney Michelle Purvis has numerous years of experience handling high net-worth divorce cases. She will fight for your best interests. Call (817) 809-8199 today to get started on your case.