Community Property

The only hard and fast rule for the division of marital property is a “just and right division.” An ambiguous term at best. In most cases, the Court will divide the property along the lines of 50/50 absent some circumstance which indicates otherwise. Circumstances calling for an unequal division include disparity of earning power, espousal or child abuse, and/or size of the separate property estate.

In Texas, marital property division is intended to achieve an equitable distribution of property.  Texas is a community property state. This means that most of the property accumulated by you and your spouse during your marriage belongs to both of you, regardless of who earned it. It also means that debts are owed by both you and your spouse, regardless of who incurred the debt. Property owned prior to your marriage, as well as gifts and inheritances received during your marriage, are separate property and do not have to be divided with your spouse if you divorce.

Community property may be divided equally. However, the judge has the ability to order division that is not equal based on a number of factors, such as fault in the divorce and whether one of the parties was a stay-at-home parent.

Separate property

The court cannot divide or divest one espouse of title to his or her separate property. Eggemeyer v. Eggemeyer 544 S.W.2d 137 (Tex. 1977); Cameron v. Cameron, 41 S.W. 210 (Tex. 1982). The court, however, can award “reimbursement” to the community estate for expenses incurred by the community to support or improve the separate property. This claim will not succeed where the non-separate property holder enjoyed “benefits” from the separate property. For example, no claim for reimbursement will lie for a separate property home that was also the marital home. Contrast this, however, with a community property reimbursement claim for a separate property business where espouse spent all of his time, labor and community property to improve the business.

Property Division in Divorces Involving High Net Worth Individuals

When one or both spouses have significant assets or an intricately structured set of financial assets, negotiating a property settlement becomes even more difficult. At law office of Midence and Skillern, P.L.L.C., we have an impeccable reputation when it comes to managing divorces on behalf of high net worth clients or clients whose divorces will involve complex property issues. Examples of complex property issues include:

• Family businesses — Whether the business was acquired before or during the marriage, we undertake business valuations to determine what the increase is worth over the course of the marriage, to help determine whether the non-owner spouse is entitled to a share of the business’s increase in worth.
• Stock and investment portfolios — Property division of investment portfolios can be extraordinarily complex, requiring careful tracing of each instance when a spouse’s separate property was used to increase the value of the jointly held investment portfolio.
• Retirement plans and QDROs — Like a family business, Texas’ property division rules state that a nonworking spouse is entitled to a share of retirement benefits accrued during the marriage by the working spouse. We work with accountants and tax advisors to structure a payout plan that keeps our clients on strong financial footing.
• Stock options — How do you place a value on future potential earnings? How do you accurately predict the future value of stock accumulated during the marriage?

Questions to Ask to Uncover the Possible Existence of Hidden Assets

To trace hidden assets, we work with investigators and forensic accountants. Once we locate hidden assets or evidence of marital financial fraud, we then trace ownership of those hidden assets and undertake the valuation process to ensure they are included in the marital estate.

First, however, we talk extensively with our client about the financial history of the marriage:

• Do you have records of your spouse’s retirement accounts? Do you know whether your spouse has more than one retirement plan?
• Do you have access to all joint bank accounts? Can you get copies of recent statements? Does your spouse have separate bank accounts? Do you?
• Is it possible that your spouse owns property in another state or country?
• Could your spouse have offshore bank accounts?
• Has your spouse ever denied you access to joint financial accounts or refused to answer questions regarding financial affairs?
• Do you have an investment portfolio? Do you keep separate portfolios? Who is your investment advisor? Do you know who your spouse’s investment advisor is?

Complex marital property division handled with experience

The attorneys at Midence and Skillern, P.L.L.C., will seek expert assistance from private investigators, forensic accountants and others. These professionals help our firm establish the origins and value of various assets. With help from these experts, we can identify how a corporation was set up, when and how a family trust was established and other key factors involved in complex marital property. Our firm handles cases involving complex marital property division for clients whose property, assets and debts include:

• Businesses such as partnerships, corporations and LLCs
• Real estate
• Ranches
• Cattle and other livestock
• Oil wells
• Overseas holdings
• Securities
• Executive compensation packages
• Family trusts
• Estates
• Student loans
• Advanced degrees

We work with experts to trace assets and prove crucial details about ownership. No matter how complex your marital property division needs, Midence and Skillern, and their staff are prepared to help you reach a fair and equitable settlement.