Safeguard Your Future With An Asset Protection Lawyer
When you got married, you likely merged your finances, bought a home together and built a life as a team. Your lives, and especially your finances, become intertwined. Untangling these financial connections during a divorce can be challenging and emotionally draining – a daunting task. At Teller Law Firm, our divorce attorneys have dedicated their legal careers to helping families in Grapevine, Tarrant County and the surrounding Dallas-Fort Worth communities manage some of the most emotional legal challenges.
Understanding Texas Property Division Laws
Texas is a community property state, which means that most assets acquired during the marriage are considered jointly owned by both spouses. This includes income, real estate, vehicles and retirement accounts. However, not all property is subject to division in a divorce. Some assets may be considered separate property, belonging solely to one spouse.
What Does The Court Consider Separate Property?
While community property has to be divided equitably in a divorce, separate property belongs only to one spouse. Separate property typically includes:
- Assets owned before the marriage
- Inheritances received by one spouse during the marriage
- Gifts given to one spouse during the marriage
- Personal injury settlements (except for lost wages)
- Property designated as separate in a valid prenuptial or postnuptial agreement
For example, if you inherited a family heirloom or received a gift from a relative during your marriage, these items would likely be considered your separate property and not subject to division in a divorce.
When Does Separate Property Become Community Property?
Separate property can become community property in certain circumstances. This can happen when separate property is mixed with community property to the extent that it becomes impossible to distinguish between the two. For example, if one spouse deposits inheritance money (separate property) into a joint bank account used for household expenses. Another example is if community funds or efforts are used to significantly improve separate property, it may result in a community property interest in the appreciation of the asset.
How Can Married Business Owners Protect Their Assets?
Even if you are happily married, there are steps you should take to protect your business assets. No one likes to think in anticipation of a divorce. However, a few steps toward asset protection planning can prevent complex property division issues in the event of a divorce. Some of these steps include:
- A pre- or post-nuptial agreement: A prenup (before marriage) or a post-nuptial agreement (entered into after a couple is married) can protect your business interests and assets in the unlikely event of a divorce.
- Define business roles and responsibilities: If you and your spouse own a business together, it is important to clearly outline each spouse’s role, responsibilities and expectations in the business.
- Maintain separate business and personal finances: Keep business and personal finances separate to avoid commingling of assets. This can make it easier to divide assets in the event of a divorce.
- Draft a buy-sell agreement: Succession planning preparation, like a buy-sell agreement, outlines the process for one spouse to buy out the other’s share of the business in the event of a divorce or death.
Our asset protection lawyers at Teller Law Firm also provide estate planning services for their Texas clients, including business succession planning. With their knowledge and extensive experience in complex asset divisions, they can help you craft agreements that will protect your business assets in the event of a divorce.
How Can Business Owners Protect Their Assets During A Divorce?
Identifying and dividing the community property of a business can be a complicated challenge and is considered an extremely complex asset to divide. As a result, business owners face unique challenges during divorce proceedings. To protect your business assets, it is important to:
- Collect your business’s financial records
- Separate business and personal accounts
- Obtain a professional business valuation
During a divorce, your business is subject to Texas community property laws. Establishing an accurate valuation of your business can protect it from being divided or liquidated during your divorce proceedings.
What Happens If You Hide Assets In Your Divorce?
It is important to follow the financial disclosure laws during your divorce proceedings. Hiding assets during a divorce is illegal and can have severe consequences. If discovered, you may face:
- Penalties from the court
- Loss of credibility in future proceedings
- Unfavorable property division rulings
- Potential criminal charges for perjury
It’s crucial to be transparent about your assets during divorce proceedings. An asset protection lawyer can help you protect your interests legally and ethically.
How An Asset Protection Lawyer Can Help
At Teller Law Firm, our asset protection lawyers understand that every divorce is unique, and each client has different priorities. Our divorce attorneys provide customized legal guidance based on your specific goals and circumstances. We help clients plan ahead for divorce and develop customized strategies that align with their objectives. Our team will work diligently to protect your assets while working toward a fair division of your community property.
Contact A Grapevine Asset Protection Attorney Today
If you are a business owner and want to protect your business assets in advance of a divorce, or if you are facing a divorce and need guidance on asset protection or any other aspect of the process, our experienced attorneys are here to help. To schedule a confidential initial consultation, call 817-612-4298 or send us a message through our website. Let us help you protect your assets and secure your future.