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Navigating asset division in a high-asset divorce

On Behalf of | Jul 31, 2023 | Civil Litigation

A divorce is always a complex process, and this complexity can increase exponentially in a high-asset divorce. The term “high-asset divorce” refers to divorces involving substantial financial assets, such as real estate, business interests, investment portfolios and more.

If you are getting a high-asset divorce, it is important to understand how Texas law governs the division of these assets.

Community property

Texas’ community property laws typically mean that all assets and income acquired during the marriage are subject to division between the spouses. This can include real estate, vehicles, retirement accounts and business interests. However, not the courts will not necessarily divide all assets equally. Texas law mandates a “just and right” division, which could lead to an uneven split if the court deems it appropriate.

Separate property

While community property laws govern most assets in a Texas divorce, some assets may qualify as “separate property.” These are assets that one spouse owned before the marriage or received as a gift or inheritance during the marriage. In a high-asset divorce, correctly identifying separate property can be a complex process but is important because separate property is not subject to division in the divorce.

The role of the court

The court plays a significant role in the asset division process in a Texas high-asset divorce. Judges have the discretion to consider numerous factors when determining a just and right division. These can include each spouse’s earning potential, who is at fault for the divorce and each spouse’s health and age.

Understanding the principles of how the courts divide property in a divorce can provide you with a clearer picture of what to expect. It is essential to thoroughly understand these aspects to prepare for this process and protect your financial interests.