Texas is a community property state, which means most property acquired prior to marriage is considered separate property, while almost anything acquired during the course of marriage is considered community property. Only community property is divided in a divorce.
Every divorce has its difficulties, but a complex divorce may involve dividing certain types/combinations of assets and debts. Complex properties are marital assets that need to be characterized on their own unique merits before they can be factored into the division of your marital property. Often, complex properties require special expertise in the form of a forensic business valuation and/or additional professional services.
What are some common situations that involve complex division of assets and debts?
There are many circumstances in which a divorcing couple is likely to have issues related to the division of complex assets/debts. Some examples include:
- When a couple has a high net-worth
- When a couple owns a significant amount of property
- When a couple owns a business
- When one or both spouses brought separate property into the marriage that has become co-mingled with marital property
- When one spouse has received a family inheritance
What does a law firm dealing with complex divorce settlements have to determine?
Value of Assets – Assets that commonly lead to complex issues of classification include small businesses, investments, retirement accounts and pensions, assets held in trust, deferred compensation, executive bonuses, and beyond.
Income-earning ability – In addition to looking at actual income, each spouse’s ability to earn money should be examined.
Hidden assets – Unreported income or assets that are placed in the hands of third parties are examples of possible hidden assets.
Value of Debts – Marital debt is “equitably” distributed in the same manner as assets.
Tax Liability – Tax consequences can be significant in a divorce and should be addressed in the context of the overall settlement. We work directly with CPAs, forensic financial advisors, and other tax professionals as necessary to assist our clients in getting the best possible outcome.
Why do you need to hire a family law attorney with expertise in complex division of assets and debts?
An attorney who is experienced with complex division of assets and debts will be able to navigate the intricacies and nuances involved in your case. Capps Law Firm, PLLC offers 28+ years of experience in protecting the rights of our clients going through a Texas divorce involving complex property valuation and equitable distribution of significant assets.
Our goal is to provide you with the information you need to make the best decisions possible for your specific financial circumstance during a complex divorce. Contact us a 512-338-9800.