Common Types of Complex Property in an Austin High Net Worth Divorce

 Posted on May 29, 2020 in Complex Property Litigation

High asset divorces in Austin, Texas are different from other divorces in many different ways. One significant distinction is that high net worth divorces almost always involve various types of complex property that must be classified and, in many cases, divided between the spouses according to Texas community property laws. If you are planning to file for divorce, or if you are in the early stages of your Austin divorce, you may already know that Texas is what is known as a “community property” state. Accordingly, most property acquired after the date of marriage will be classified as community property, and it will be divided between the spouses in a manner that the court determines to be “just and right.”

Classifying and dividing certain types of property can be extremely complicated, however, and high net worth divorce cases usually involve a substantial amount of complex property. The following are some of the common types of complex property that you may need to consider in your Texas divorce. And if you need assistance, you should know that an aggressive Austin high asset divorce attorney can represent you.

Rare Art, Books, Music, Artifacts, and Other Collectible Items

In Austin, many married couples share a home full of interesting collections, such as local art, rare books and music, and other artifacts. Collections made up of objects like these can be complicated to classify and divide in a divorce for many reasons.

First, if a married couple owns items that are part of a collection, neither party may be willing to have the collection split up and may want to find a way to negotiate an agreement about the division of the objects. Next, properly valuing or appraising items in these types of collections can be extremely difficult. For rare art, books, and music, values can shift significantly over time, and those values are dependent on the market. Even if you had the collection appraised in the last five years for insurance purposes, the value could have changed dramatically—either up or down—since then.

Finally, it can be very difficult to classify objects in collections like these as separate or community property if there is no purchase record. If the couple has been building a collection for years together during the marriage (but brought some of the objects to the marriage), it may be difficult to clarify, without a bill of purchase or other documentation, whether any items in the collection are actually separate property.

Business Holdings and Investments

If you own a business, or you own an interest in a business, you should know that this is a frequent type of complex property that comes up in high net worth divorces. When you own a business with one or more people (aside from your spouse), it can be very difficult to reach an agreement about how your stake in the business will be divided in your divorce. Depending upon the situation and the specific facts of your case, you may need to have your business partners buy you out, or you may need to give up other community property to which you may have rights in order to retain your ownership in the business. In other situations, it may be necessary to close or dissolve a business when one of the owners gets divorced.

Contact a High Asset Divorce Lawyer in Texas

Do you have questions about property division? A skilled Austin high asset divorce lawyer can assist you. For issues beyond community property division, a complex child custody attorney or complex litigation attorney at our firm can help. Contact Powers Kerr & Rashidi, PLLC online or call our firm at 512-610-6199.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.6.htm