High Asset & Complex Property
At Slav Law, we understand that divorces involving substantial assets require specialized legal expertise. Our experienced high net worth divorce attorneys are adept at navigating the complexities of complex property division to protect your interests. Whether you're concerned about asset protection during divorce or seeking guidance on how to protect assets during divorce, our team is here to assist you.
Protect your assets during divorce with the expertise of Slav Law's high net worth asset division lawyers. Ensure fair and favorable property division while safeguarding your wealth.
It's important to note that there are two categories within the broader term of property:
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Real Property: Real estate and land.
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Personal Property: Everything else, including money, investments, and personal belongings.
Understanding Complex Property Division in Texas
Determining how marital property will be divided during a divorce can be confusing and contentious. The first step in distributing property acquired during a marriage is determining which estate owns the property. Texas is a community property state, and accordingly, Texas Family Code § 3.003(a) establishes that “property possessed by either spouse during or on dissolution of marriage is presumed to be community property.”
5. The programs available to assist these individuals to promote the best interest of the child.
6. The plans for the child by these individuals or by the agency seeking custody.
7. The stability of the home or proposed placement.
8. The acts or omissions of the parent which may indicate that the existing parent-child relationship is not a proper one.
9. Any excuse for the acts or omissions of the parent.
1. The desires of the child.
2. The emotional and physical needs of the child now and in the future.
3. The emotional and physical danger to the child now and in the future.
4. The potential abilities of the individuals to promote the best interests of the child.
Holley Factors
When determining issues of conservatorship and possession of and access to a child, Texas Family Code § 153.002 establishes that the best interest of the child is the primary consideration of the Court. The code does not explicitly state what the Court must consider when determining the best interest of the child. Where the statute falls short, case law provides insight on helpful factors that a Court may consider.
In Holley v. Adams, the Texas Supreme Court delineated nine factors that courts regularly apply when determining the best interests of the child. This list went on to be known as the Holley Factors. These factors are often used by professionals in family law matters, such as a Guardian Ad Litem or an Attorney Ad Litem, as they present what they believe to be in the best interest of a child and the basis of that position. The nine Holley Factors are:
In Texas, property acquired during a marriage is presumed to be owned by the community estate, with some exceptions. All property will fall within either the community estate or the separate estate of one of the spouses.
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Community Estate: Property acquired during marriage and owned by both spouses, subject to division in a divorce.
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Separate Estate: Defined in Texas Family Code § 3.001, consisting of property acquired prior to marriage, property acquired during the marriage by gift, devise, or descent (inheritance), or recovery for personal injury lawsuits other than recovery for lost wages.
To determine which estate property belongs to, it must be characterized. Key factors include when and how the property was acquired.Though there is a presumption that property acquired during the marriage is community property, a spouse may rebut this presumption by establishing by clear and convincing evidence that the disputed property is separate property.
Spousal Fiduciary Duty and Breach
A fiduciary relationship exists between spouses regarding the portion of community property controlled by each. Marriage inherently relies on trust and confidence, giving each spouse agency to act on behalf of the other. This can leave a spouse vulnerable if one acts without the other's knowledge, creating legal and financial implications.
Spouses are held to a duty of "utmost good faith." Thus, conduct affecting the property rights of the other spouse can constitute constructive fraud, even if similar actions outside of marriage wouldn't be fraudulent.
Fraud on the Community: This is a breach of fiduciary duty that violates the spousal relationship andarises when one spouse unfairly disposes of the other's interest in community property without the other’s knowledge or consent. The responding party must prove the fairness of the transaction to rebut the presumption of fraud.
Example
Bandit and Chili are married in 2005 and start Bluey, LLC together. Bluey, LLC owns interests in several properties. Some of the properties owend by Bluey are rented to Bandit's family members.
Chili files for divorce in 2023 and discovers that Bandit sold some real property to his family in 2020 without her knowledge, including selling Lake Travis Lakefront Property for $20. Chili can include a claim of breach of fiduciary duty in her divorce pleadings.
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Protecting High-Value Assets During Divorce
When substantial assets are involved, proper legal guidance is essential. Our complex asset division lawyers specialize in high-asset divorces, ensuring that your property rights are protected. We advise on strategies for asset protection during divorce, helping you understand the characterization of property, collect proof to support your claim, and ways to safeguard your assets.
Even when parties agree about the characterization of the property, one estate can still owe a reimbursement to the other. For example, a house purchased before a marriage is clearly separate property. However, the community estate may be entitled to a reimbursement for some of the community funds spent to pay the mortgage during the marriage.
Notably, Texas courts are not required to divide the community estate equally between the spouses. Texas Family Code § 7.001 states that a court “shall order a division of the estate of the parties in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.” The court may consider many factors, including fault in the breakup of the marriage, custody of children, and disparate earning power of the spouses.
Similarly, a court is not required to equally divide debts acquired during a marriage. A skillful asset division lawyer can advise you on these nuances and work to achieve a favorable outcome for you.
Mixed Character Real Property
A mixed character asset is property owned in part by both the community estate and one or both separate estates of the spouses. Mixed character real property is common when a house is bought during the marriage using both separate property funds of one spouse and community funds. In that case, the house is community property but includes a separate property interest for the spouse who contributed separate funds.
Presumption of Community Property
Property acquired during the marriage is presumed to be community property.
Separate Property Claims
This presumption does not divest a spouse of possible separate property claims in that community property.
Separate Funds Contribution
Purchasing community property with separate funds creates a separate property interest in the property.
This principle is outlined in the landmark Texas case Gleich v. Bongio, 128 Tex. 606 (1937). Key points from this case include:
Example
Bandit and Chili are married in 2005. Real Austin Property House was acquired in 2004 by Bandit before the marriage. Bandit never changed the title and has exclusively been the owner since its purchase. Chili was never added to the title.
Bandit sold Real Austin Property House in 2015. The proceeds from the sale were not co-mingled in any community accounts but transferred from his separate savings to purchase the marital residence, Bandit and Chili Austin Home. The gross purchase price was $490,657.45, with $72,369.44 of Bandit’s separate funds used. Therefore:
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Bandit’s Separate Property Interest: $72,369.44
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Community Property Interest: $418,288.01
Choose Slav Law for Complex Property Division
Navigating a divorce involving significant assets requires the expertise of a seasoned high net worth divorce lawyer. At Slav Law, we offer:
Experienced Representation
Our attorneys have extensive experience handling complex property division cases
Personalized Strategy
We tailor our approach to your specific situation, ensuring your unique needs are met.
Comprehensive Services
From asset characterization to litigation, we cover all aspects of property division
Local Expertise
If you're searching for a property division attorney near me or a divorce lawyer property division near me, our firm is conveniently located and ready to assist.