The importance of timing in a high-asset divorce

The importance of timing in a high-asset divorce

| Dec 9, 2020 | Divorce

When preparing for a high-asset divorce, one of your biggest concerns will be how you split your assets. When you choose to do so can make a huge difference.

The value of your marital assets is not static. If developers announce a new school or prestigious mall close to your family home, it could push your house’s value up significantly. If you own stocks or shares or a business, their value can also fluctuate drastically from one week or month to the next. All of those things can affect the division of your marital property and assets.

What date do Texas courts use to value the assets in a marital split?

Usually, Texas courts use the date of separation or the divorce date as the valuation date. However, they can alter this. You may also be able to agree on a date with your spouse with the help of your attorney.

Does all my property have to be divided?

Things that were yours before marriage are usually considered separate property. In other words, you get to keep them after the divorce. Most items acquired during a marriage are considered community property and need to be divided in a divorce. So, too, may any assets that were solely yours before the marriage but have since been commingled with your spouse’s assets.

Can I acquire more assets during a divorce?

If you make a living by trading in property or other assets, you may worry about buying more when divorce is on the cards. If you get it wrong, you could potentially lose half or more to your spouse. Yet, stopping doing business may also be out of the question as it would leave you with no ongoing income.

How can I be sure of which date will apply?

Speak to an attorney before filing for divorce. There may be significant advantages to delaying or speeding up filing for your divorce. Your attorney can advise you if it is wise to continue buying assets or hold off for a while. They can help you find the best solution for your needs.