Protecting your assets during a high-asset divorce in Texas requires a full understanding of the specific laws that pertain to divorce and using strategic planning to take advantage of them: family law firms in Houston can help. Here’s what to do:
Contact Experienced Family Law Firms in Houston
Engaging an experienced divorce attorney who specializes in high-asset cases is the most important step to take. You want a local attorney with a strong understanding of Texas community property laws and a track record that shows they can develop strategies to protect your assets effectively. Visit this page to learn more about a Houston law firm that can help.
Contact Other Experts
In addition to legal expertise, you’ll also want the help of financial advisors and forensic accountants, and your divorce lawyer will be able to suggest people in these fields with the experience you need. Financial advisors can help manage and protect your wealth during the divorce process, while forensic accountants can uncover hidden assets, trace the origins of funds, and provide detailed financial analyses.
Consider Trusts
Trusts are a powerful tool for protecting your assets. A trust is a legal arrangement where a trustee manages assets on behalf of beneficiaries, and there are various types of trusts, each offering different levels of protection. Revocable trusts allow you to retain control over the assets and make changes during your lifetime. However, because you retain control, these trusts may not provide the same level of protection in a divorce as irrevocable trusts.
Irrevocable trusts, on the other hand, transfer control of the assets to the trustee, making it more difficult for these assets to be considered marital property. By placing assets in an irrevocable trust, you can effectively remove them from your marital estate, which shields them from division in a divorce. You will need to establish these trusts well in advance of any potential divorce proceedings, however, or you may face accusations of fraudulent conveyance.
Engage in Asset Tracing
Texas presumes that all property acquired during the marriage is community property, and that means it’s subject to equal division upon divorce. However, you can protect your separate property (assets owned before the marriage or acquired through inheritance or gift) if you’re able to demonstrate its separate nature through asset tracing. Professional forensic accountants are a big asset in this process. Talk to your lawyer about how to firmly establish your separate property.
Managing Joint Accounts and Debts
Once divorce is imminent, it’s wise to separate any joint accounts and establish individual accounts to prevent your spouse from accessing or depleting the funds. Managing debts is equally important. Joint debts, such as mortgages or credit card balances, should be addressed to ensure that both parties are clear on their responsibilities. If these joint debts are neglected, it can lead to some serious financial complications and damage to credit scores.
Protecting your assets during a high-asset divorce requires careful planning, legal knowledge, and strategic actions. Most of all, it requires the skilled help of an experienced family law attorney. If you have a lot to lose, don’t hesitate. Get the legal help you need right away.
