Your High-Asset Divorce: Utilizing an Agreement Incident to Divorce

 Posted on January 31,2015 in High Asset Divorce

Society today exhibits an insatiable appetite to learn the details of the lives of those who are in the public eye—be they celebrities, professional athletes, or high-powered business executives. This is evident by the number of tabloids one can find at any supermarket checkout, with headlines screaming rumors and innuendos. This type of invasion of privacy can also occur for couples who are going through a high-asset divorce in Texas.

Too often, details of an acrimonious divorce and/or child custody negotiations are somehow leaked to the media. Details of alleged extra-marital affairs, sexually transmitted diseases, domestic violence, and other situations that can destroy careers suddenly become fodder for the press. Couples need to be fully aware that the documents and details of their divorce will eventually make their way to the public.

Once a judge enters a final divorce decree, that document becomes part of the public record. Everything that is contained in that decree, including assets and liabilities, is available for anyone to look up. Some jurisdictions even allow on-line access to divorce decrees.

However, in Texas, under the Family Code statute, Sec. 7.006, Agreement Incident to Divorce or Annulment, a couple can ensure the details of their complex divorce settlement will remain private by entering into an Agreement Incident to Divorce (AID). This document allows a couple to privately agree on terms of child custody and division of assets, but it does not become part of the divorce decree which is filed. The document is not filed with the court. This ensures that those private details remain private.

The AID is considered a legal contract is completely enforceable. If one spouse breaks the agreement, the other spouse can sue for damages for breach of contract. According to the statute, the AID is incorporated by reference into the final decree, and terms are subject to contempt charges for failing to comply, just as they would be if they were written directly into the decree.

If you are going through a complex divorce and are concerned that details of your private life will become public, you may want to consider entering into an AID with your spouse. Contact an aggressive Cedar Parks high-asset divorce attorney to discuss your options.