High-asset divorces can present many complexities because there is a lot at stake for both spouses. High-asset divorces are more likely to lead to conflict and complex litigation since spouses are more inclined to engage in aggressive tactics such as hiding assets.
Before you start the process of asset division in a divorce, it is important that you understand the challenges that you may face. This will help you to prepare appropriately and develop strategies to ensure success.
Assets are more likely to be hidden in community property states
Texas is a community property state, which means that generally speaking, all marital assets are split equally between spouses, regardless of the circumstances. This means that the outcome of the asset division is fairly predictable in Texas. This can lead to some spouses attempting to hide assets. It is important that you are aware of the possibility of your divorcing spouse engaging in this behavior and that you look for red flags.
Marital property status may be questioned
Marital property counts as all property that was acquired during the marriage, with the exception of gifts and inheritances. High-asset divorcing spouses may try to question the marital status of many assets, trying to claim that they were, in fact, personal gifts instead of shared assets. It is important that you are able to keep track of all significant assets and the way in which they were acquired.
If you are approaching divorce, it is important that you do not approach the asset division process naively. Make sure that you understand Texas law before devising a strategy.