Handling Out-of-State Property in a High Asset Divorce

 Posted on April 28,2020 in High Asset Divorce

Many couples in Austin, Texas with significant assets own property outside the state of Texas. In some cases, a couple may even have international assets, such as real estate or bank accounts. While these types of property are not as common in divorces involving middle-class couples, high net worth divorces in Texas often do have assets located in other states and other countries. When assets are located outside of Texas, this fact alone does not mean that they will not be subject to division. Rather, any assets, regardless of where they are located, will need to be classified and, if they are community property, divided between the spouses.

We want to provide you with more information about handling out-of-state property in a Texas high net worth divorce. An aggressive Austin high asset divorce attorney can discuss the specific details of your case with you today.

Out-of-State Property Must Be Classified

If you and your spouse both live in Austin or at least you both live in the state of Texas, you may be wondering whether valuable property that is located outside the state — either in another U.S. state or in an international location — will need to be identified when you go through the divorce process. Texas law makes clear that any assets owned by the spouses need to be properly identified and classified. In other words, when you list the property you own so that the court can determine whether it should be classified as community property (and thus subject to division) or separate property (and thus not subject to division), you do need to list out-of-state assets.

If the court determines that an out-of-state asset is community property, it will still be subject to division in the divorce even if it is not located in Texas. You should know that Texas law typically identifies community property as any property acquired after the date of marriage, with few exceptions. As such, if a couple acquired an out-of-state asset during the marriage, there is a high likelihood that it will be divisible.

Assets Located in Non-Community Property States: Are They Community Property in Texas?

Many spouses who are getting divorced and have out-of-state property want to know if assets located outside the state of Texas, in a state that is not a community property state, will still be classified as community property. In general, Texas courts will classify this type of property as “quasi-community property.” In the state where it is located, it would not be considered community property because that state is not a community property state. Yet since the spouses now are getting divorced in Texas, which is a community property state, the property needs to be classified in such a way that a Texas divorce court can determine whether or not it is divisible.

When property is classified as quasi-community property, the court reasons that, if the couple had purchased the property in Texas, it would have been classified as community property. Quasi-community property is divided as if it were community property. As such, although it may be located in another state (or even another country), it can still be divisible. It is important to keep in mind that any property located outside of Texas that would be classified as separate property by that non-community property state may also be separate property in Texas.

Contact an Austin High Net Worth Divorce Lawyer

If you have questions about handling out-of-state property in your Austin high net worth divorce, an experienced Texas high asset divorce lawyer can discuss your case with you. For additional matters in your divorce, a complex child custody attorney or complex litigation attorney can help. Contact Powers Kerr & Rashidi, PLLC online or call our office at 512-610-6199.

Source:

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