Posted on November 08, 2019 in Complex Divorce

A high asset divorce does not necessarily involve contested litigation. In many cases, the divorcing spouses are eager to resolve their outstanding issues and end their marriage as quickly as possible. To facilitate this, Texas law does allow for mediated settlement agreements (MSA).

An MSA is a legally binding contract signed by both parties. A mediator serves as a neutral facilitator who assists the parties, and their attorneys, in reaching an agreement. But unlike an arbitrator, the mediator does not have the legal authority to force a decision. The spouses are still free to abandon mediation at any time and take their case to litigation.

Texas Supreme Court Clarifies Law Governing Mediated Settlement Agreements

The Texas Supreme Court recently addressed an important legal question regarding MSAs: Are such agreements enforceable if they are signed before either spouse actually files for divorce?

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 Posted on October 29, 2019 in Complex Property Litigation

There are two questions that often come up in high asset divorce cases: First, how does a court properly characterize “community” versus “separate” property? Second, to what extent does the other party's fault in causing the divorce affect the court's division of community property?

Court: Judge Allowed to Award Ex-Wife Greater Share of Community Property Based on Ex-Husband's Infidelity

To give you some idea of how the courts address these questions, here is a recent decision from the Texas 1st District Court of Appeals. In this case, a former husband appealed a divorce judgment that awarded most of the couple's community property to the former wife. On appeal, the husband challenged both the unequal distribution and the overall characterization of some of the property.

The couple was previously married for 10 years. The former wife filed for divorce on grounds of infidelity and cruel treatment. The former husband apparently did not challenge these allegations. The trial court ultimately granted the divorce on grounds of infidelity and cruel treatment.

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 Posted on October 22, 2019 in Child Support

One issue that often comes up in a high asset divorce is how to properly value the “net resources” of a spouse for purposes of calculating child support payments. Texas law requires a court to take into account a wide range of resources, including such things as retirement benefits or annuities payable to the parent required to provide support. That said, there are some forms of income, such as “return of principal or capital” that are not considered part of the parent's net resources.

Texas Appeals Courts Reach Different Conclusions on Scope of Annuities Definition

With respect to annuities, there is some disagreement among Texas appeals courts as to whether certain types of annuities may be excluded from a net resources calculation. This issue came up in an October 9 decision from the Fourth District Court of Appeals in San Antonio. In that case, the Fourth District declined to follow a 2009 holding from the 10th District Court of Appeals in Waco, which raised a similar issue.

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 Posted on October 15, 2019 in QDROs, Pensions and 401(k)s

In a high asset divorce, one of the most critical issues is the division of retirement accounts. When one spouse earns a pension during the course of a marriage, it is considered community property. This means any such pension is subject to division as part of the overall divorce proceedings.

Austin Court: Divorce Invalidated Previous Designation of Ex-Spouse as TRS Pension Beneficiary

Pension plans require a covered employee to designate a “beneficiary,” who will receive any remaining pension benefits upon the employee's death. Typically when an employee gets divorced, the court will issue Qualified Domestic Relations Orders (QDROs), which instructs the pension plan administrator on how to divide any accounts or benefits. A QDRO also serves to override any prior beneficiary designation that conflicts with its terms.

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 Posted on September 24, 2019 in Prenuptial Agreements

Prenuptial agreements are a common legal tool used to avoid protracted litigation, particularly in the event of a high-asset divorce. Of course, when a divorce proceeding actually begins, it is not unusual for one spouse to challenge the validity of the prenuptial agreement. This is why it is essential to follow certain procedures when drafting the agreement initially.

Houston Court Rejects Wife's Challenge to Prenuptial Agreement

A recent decision from a Texas appeals court illustrates how to successfully defend a prenuptial agreement from such a challenge.

This case involves a couple that initially met through a dating website. The future husband lived in Houston, while the future wife lived in Vietnam. Even before the two met in person, the husband said he "wanted his future wife to sign a prenuptial agreement to protect his assets," according to court records.

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 Posted on September 20, 2019 in Complex Property Litigation

Because Texas is a community property state, divorcing couples are usually required to divide all assets acquired during the marriage itself in an equitable manner. In most cases, both spouses retain access to these funds and assets while the divorce is pending, so that they can pay reasonable expenses, such as mortgage payments, utility bills, and childcare costs. Spouses who step outside of these limits could be found to have wasted marital assets, an act that is not taken lightly by divorce courts. If you are preparing for or have already filed for divorce and believe that your own spouse is wasting marital assets, you should contact an experienced high asset divorce lawyer who can ensure that your assets are protected.

What Qualifies as Wasting Marital Assets?

Known as dissipation, the wasting of marital assets during a divorce is prohibited under Texas law, which makes it unlawful to dissipate marital property by:

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 Posted on September 12, 2019 in High Asset Divorce

Having individual legal representation during divorce proceedings is one of the best ways that divorcing couples can ensure that their marriages are dissolved as quickly and smoothly as possible. There are, however, other professionals who can also play a crucial role in helping couples divide their most valuable assets, come up with alimony agreements, and negotiate child custody arrangements. Determining who to contact for help with your own divorce can be difficult, so if you and your spouse have decided to file for divorce, you should consult with an experienced high asset divorce lawyer who can assist you in building a dedicated divorce team.

Business Valuators

Hiring a team of professionals can play an important part in helping a divorcing couple resolve their differences, especially when it comes to valuable, unique, or complex assets. For instance, many of those who are involved in high asset divorces own one or more business interests. In these cases, divorcing parties are usually encouraged to retain an experienced business valuator who can provide an accurate assessment of a company’s value. Taking this step is critical to ensuring that any property division agreements are equitable and fair to both parties.

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 Posted on September 06, 2019 in Complex Property Litigation

Couples who own especially valuable or unique assets face a number of difficulties when it comes to divorce. Fortunately, individuals who find themselves in this situation do have certain tools at their disposal that can help them prepare for the property division process. Creating a property division checklist, for instance, has helped countless divorcing couples account for, categorize, value, and fairly divide their marital property. Creating a property division checklist, however, can be a difficult endeavor in its own right, so if you are considering divorce and have questions about how your marital assets will be divided, please contact an experienced high asset divorce lawyer who can walk you through the property division process.

Marital Property Categories

One of the biggest challenges faced by divorcing couples is deciding who will retain which assets. To help simplify this process, many divorcing couples are encouraged to create a property division checklist, in which they account for and categorize all of their assets. Although each couple’s property division checklist will look different, there are some basic categories under which most assets fall, including:

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 Posted on August 28, 2019 in Complex Property Litigation

Although divorce can be an emotional rollercoaster for the parties involved, proceedings can become especially contentious when there are disputes about ownership of significant, unique, or valuable assets. While prenuptial agreements can help clear up these disagreements, many couples fail to enter into these types of contracts, as they deem it unlucky to contemplate the end of a marriage before it actually begins. For help protecting your property during your divorce, please contact our experienced Texas high asset divorce legal team today.

Accounting for All Assets

One of the biggest mistakes that a divorcing couple can make is to fail to account for all of their assets, including:

• Current bank accounts
• Non-cash assets
• Future interests, such as pensions, start-up stock options, and business interests

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 Posted on August 23, 2019 in Family Businesses

In the absence of a pre or postmarital agreement, a couple who has decided to divorce and who owns businesses will need to decide how those assets will be divided, which will also require an accurate business appraisal. These appraisals are conducted by experts, but it’s still important to carefully review them for accuracy. However, the technical language of these documents can make their review a difficult process, so if you are considering divorce and own one or more businesses, it is important to retain an experienced Austin, TX high asset divorce lawyer who can go over the appraisals with you and ensure that the terms of any property settlement agreements are fair.

Professional Standards

Before requesting a business valuation, it is important for divorcing couples to ensure that the appraiser is qualified to perform the analysis and has the proper credentials. There are three main professional associations that issue valuation standards for appraisers: the American Society of Appraisers, the American Society of Certified Public Accountants, and the National Society of Certified Valuation Analysts. Ensuring that your own appraiser has been credentialed by one of these groups is one of the first steps that a divorcing couple should take when seeking an appraisal.

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