Houston Complex Property Division Lawyers

What Assets Commonly Factor into Complex Property Division Cases?

Some high-value assets that can impact the outcome of a property division case include:

• Oil and gas interests. Mineral rights can be valuable. Whether the court considers mineral rights in your case as separate or community property determines who can develop the land, draw materials from it, and obtain royalties if they lease the property.
• Stock options and company stock. Under Texas Family Code, all or a portion of stocks and shares earned or acquired during a marriage qualify as community property, meaning both parties can come away from the divorce with some stock.
  • Read more about:
    • How Restricted Stock Units (RSUs) Are Divided If They Do Not Vest Until After Divorce
• Family businesses. Whether a business is community property or separate property depends on when the business was started and what funds may have been used to start the business. Parties may often disagree on the value of a family business (usually, the parties hire different financial experts to valuate the business and then negotiate a value). After establishing a value, the parties have multiple options, including:
  • One party buying the other out;
  • Continuing to operate as co-owners;
  • Dividing the business into two entities;
  • Selling the business; and,
  • Dissolving the business entirely.
• Trusts and family limited partnerships. Whether courts consider property held in trusts or family limited partnerships community property can largely depend on when the trust was created. Property in trusts developed before the marriage is typically regarded as separate property, but trusts drafted during the marriage may be considered community property.

Fraud & Hidden Assets During Complex Property Division Cases

The value of property in complex property division disputes can sometimes entice parties to deceive the court (or attempt to) and seek a more favorable property division judgment than they are entitled to receive.

As part of the property division process, each party must disclose all of their community and separate property to the court and to the other party. This helps the court make appropriate decisions during the property division case and other divorce-related processes, such as custody and alimony disputes.

Sometimes, one party attempts to hide assets from the court. Typically, individuals employ this strategy to make themselves appear less wealthy than they are to obtain a better outcome during property division or avoid distributing certain assets.

Individuals may also try to commit fraud to achieve a similar result. Two types of fraud commonly seen during property division cases are the following:

• Actual fraud. Actual fraud involves one spouse attempting to intentionally deceive the other to prevent them from knowing about or using property. For example, a spouse who owns a business may funnel revenue through an employee or relative to make the business appear less profitable than it actually is and obtain a better judgment during property division.
• Constructive fraud. During property division, couples have a "fiduciary duty" not to waste or dispose of marital assets until the case concludes. When a spouse breaches the fiduciary duty and wastes or destroys property, it is a form of fraud.

When we handle these disputes, we often recommend that clients gather several years of bank statements, tax returns, and business records at the outset of the case so we can compare historic patterns of income and spending against current behavior. That type of detailed review can reveal unexplained transfers, new accounts, or sudden changes in compensation that may indicate that one spouse is trying to move or disguise community assets before a court in Harris County or another Texas county has the chance to divide them.

Utilizing Financial Experts During Divorce

Some ways to utilize financial experts include:

• To establish the monetary value of certain property at issue;
• To help an individual budget for the divorce and understand what to expect from certain processes like filing for taxes post-divorce;
• To act as an expert witness, supporting an individual's statements about the value or purpose of property; and
• To prevent another party from committing fraud or hiding assets through the use of forensic accounting.

In many Houston complex property division matters, we coordinate with different types of professionals, such as business valuation analysts, forensic accountants, and retirement plan experts, each of whom brings a distinct perspective to the marital estate. For example, a valuation analyst can examine a closely held company’s financial statements, customer lists, and goodwill to determine a defensible value range that can be presented to the court or used in settlement negotiations.

Dividing Property Across Jurisdictions

Frequently, parties engaged in a complex property division case own assets and liabilities across multiple jurisdictions.

When property such as real estate is owned in multiple jurisdictions, local laws affect the division of that property. For example, if you own $125,000 of real estate in Puerto Rico, Puerto Rico property division laws may affect the division of that property.

Disputes involving property that is located in states other than Texas, or even in other countries, often involve more complex issues. At Diggs and Sadler, our Houston complex property division attorneys have the legal acumen and knowledge to help you find the best path forward in your case.

These cross-border issues can arise with many kinds of assets, including vacation homes, investment accounts opened while living abroad, or retirement benefits earned in another country. Each jurisdiction may have its own rules about marital versus separate property, recognition of Texas court orders, and tax treatment, so it is important to work with counsel who can coordinate with lawyers or professionals in those locations to help ensure that any final decree from a court in Houston is practical to implement.

We take time early in the case to identify where all assets are held, which courts may have authority over them, and what procedural steps might be required to enforce a Texas judgment elsewhere. That planning helps avoid surprises later and allows us to build a coordinated strategy that addresses both the Texas community property framework and any additional requirements imposed by other states or countries involved in your marital estate.

Our Process for Handling Complex Property Division Cases

When a case involves substantial or complicated assets, it can feel overwhelming to know where to start. We follow a structured process that is designed to bring order to that complexity and to give you a clear understanding of what to expect at each stage. From the first meeting, we focus on gathering the right information, identifying potential problem areas, and explaining how Texas law will apply to your particular mix of assets and debts.

As the case progresses, our team-based approach allows us to assign different tasks to the lawyers and paralegals best suited to handle them, while keeping you informed about key developments. One member of our team may focus on discovery and document analysis, another on negotiations or mediation preparation, and another on developing themes and exhibits for a possible trial in the family courts in Houston. By preparing every matter as if it will be tried, we position you to negotiate from a place of strength while remaining ready to present a clear and organized case to the judge if settlement is not possible.

To schedule a consultation with our Houston complex property division attorneys, contact us online or via phone at (713) 766-5355.