How Do I Protect My Assets in a Divorce?

 Posted on June 29, 2024 in Adoption

Divorce is a stressful process, especially if you have multiple assets or high net worth assets that you want to protect. It can be difficult to navigate the divorce process while trying to keep your business or other important assets intact, which is why the experience of a Texas divorce attorney is essential. Your divorce lawyer can advocate for a fair division of assets during your divorce.

Am I Required to Split My Assets in a Texas Divorce?

In Texas, community property laws determine how couples will split their assets during a divorce. In general, assets that are acquired before a marriage occurs will be considered separate property, and these assets will not be subjected to division. On the other hand, any assets that are acquired during the marriage are typically considered marital property.

In some cases, certain assets acquired during marriage, such as one spouse receiving an inheritance, are separate property and not community property. However, you may need to show that these assets were kept separate and not combined with other types of marital assets, such as a joint business or investment to avoid them being classified as community property.

Tips For Protecting Your Assets During Divorce

Protecting your assets in a divorce is often one of the top concerns in a high net worth divorce. The following tips can help you protect your assets if a divorce occurs:

• Secure a prenuptial or postnuptial agreement – These agreements are valuable during a divorce as they already outline which assets may be subject to division, in addition to the assets each partner is eligible to receive.

• Keep any personal assets separate – By creating a trust or separate bank account for your inherited money or your business’s funds, you can further indicate that this is a separate asset and not part of your marriage’s community property.

• Compensate your partner for his or her role in your business – If you and your spouse worked together or invested in a business during your marriage, keeping track of finances and ensuring proper compensation can reduce complications during a divorce.

• Do not attempt to hide your assets – Hiding your assets by gifting large amounts of money, overpaying taxes, or any other means is considered a "fraud on the community" under Texas law, and it can result in serious legal complications.

Contact an Austin, TX Divorce Lawyer

Keeping your assets safe from division during a divorce can be complicated, and you will need the assistance of a skilled Travis County, TX divorce attorney throughout this process. At Powers Kerr & Rashidi, PLLC, our attorneys are experienced in negotiating and ready to protect your financial interests during your divorce. Call 512-610-6199 for a consultation.