Evidence in High Net Worth Divorce Cases

Characterization of Property in Texas Divorces

In Texas divorce cases, property is classified as either community or separate. Typically, any property obtained by either spouse during the marriage is presumed to be community property. However, certain types of property, such as gifts, inheritances, and personal injury damages, may be classified as separate property, unless they were intended to compensate for lost wages. Moreover, property that is explicitly identified as separate property will be excluded from community property, even if it was obtained during the marriage. Any property that either spouse owned before the marriage or that falls under one of the exceptions to community property is also considered separate property. Community property is jointly owned by both parties and is subject to equitable distribution, which means the court may divide it as it considers fair.

Disagreements frequently arise between high net worth couples during divorce proceedings regarding whether the property is considered community or separate, and the value of the property. To dispute the presumption that an asset is community property, a party must provide clear and convincing evidence that demonstrates that the property belongs to one spouse. This requirement applies to high net worth divorce cases as well, where the evidence must establish that it is highly probable or almost certain that one spouse owns the property. A prenuptial agreement may serve as evidence in some cases, and in Texas, prenuptial agreements are enforceable if they are written, signed voluntarily by both parties, and follow a full and fair disclosure of assets and liabilities, unless the parties waive such a disclosure. However, if one spouse demonstrates that the other party did not adequately disclose finances before signing the agreement, the court may deem it unconscionable and unenforceable.

When community and separate property are mixed, issues may also arise. For example, if one spouse uses income from separate property to buy or maintain community property, or contributes community income to a separate account or 401K, determining whether the property is separate or community can be disputed. In such cases, both parties may need financial experts to determine the nature and value of the property and provide testimony. In some high net worth cases, one spouse may try to decrease the value of separate property or assets to lower alimony obligations or convince the court to award them a greater percentage of community property. Therefore, in high net worth divorce cases, parties may need to provide appraisals or reports from forensic accountants to establish the property's value. An experienced divorce attorney can assist in navigating arguments over the validity of prenuptial agreements and other disputes related to high net worth divorce cases.

Speak with an Experienced Divorce Attorney

Individuals with substantial net worth often possess significant assets that require safeguarding in the event of a divorce. At Wilson Whitaker Rynell, our divorce attorneys are committed to assisting clients in managing the complexities of high-stakes divorces. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.