A contested divorce in Austin can quickly become a high-stakes legal battle, especially when valuable assets, property, and financial security are on the line. Whether you own a family business, multiple properties, retirement accounts, or investments, protecting your assets during a contested divorce requires preparation, strategic planning, and experienced legal guidance. Below are four strategies to help you navigate this process.
1. Identify and Document All Assets Early
One of the first steps to protecting your assets during a contested divorce is creating a comprehensive inventory of everything you own — both individually and jointly with your spouse. This step is important because Texas is a community property state, meaning most assets acquired during the marriage are presumed to belong to both spouses equally. However, some assets like inheritances, gifts, and property you owned before the marriage may count as separate property. Having the right documents in place can help with proving this.
Tips for Documentation
- Gather financial statements for all bank accounts, investment accounts, retirement funds, and real estate holdings.
- Collect property appraisals, titles, and deeds for any real estate, vehicles, or valuable personal property.
- Maintain records of any inherited or gifted assets, including paperwork showing the source and date of the transfer.
- Review your prenuptial or postnuptial agreement, if applicable.
The more thorough your documentation, the stronger your case will be for protecting your assets during a contested divorce in Texas. However, if you do not have these documents, your family law attorney can help you obtain them.
2. Avoid Commingling Separate and Community Property
In Texas divorces, protecting your assets during a contested divorce can become more complicated if your separate property has been mixed with marital assets. This is known as commingling, and it can make it difficult to prove what belongs to you individually versus what is subject to division.
Common Examples of Commingling
- Depositing inherited funds into a joint account.
- Putting sales proceeds from a home earned before a marriage or other assets owned prior to marriage into a joint account
- Depositing income or other community assets into an account owned prior to the marriage, even if that account remains only in your name
To strengthen your chances of protecting your assets during a contested divorce, avoid combining separate and marital property. If you already have, working with a forensic accountant can help you trace the origins of those commingled assets.
3. Secure a Prenuptial or Postnuptial Agreement
A prenuptial or postnuptial agreement is one of the best tools for protecting your assets during a contested divorce. These legal agreements outline which assets are considered separate property and how marital property will be divided if the marriage ends.
Prenuptial agreements are signed before marriage, while postnuptial agreements are created after the wedding. Both help protect business interests, inheritances, and other valuable assets by providing clear terms for property division.
If you already have one of these agreements in place, it can play a key role in protecting your assets during a contested divorce. If not, it’s worth discussing with an experienced Austin divorce attorney to see if a postnuptial agreement could still offer protection.
4. Work with Financial Experts and Forensic Accountants
When significant assets are at stake, such as businesses, real estate portfolios, retirement accounts, and investments, working with financial professionals is a great strategy for protecting your assets during a contested divorce. For example, if you believe your spouse may be hiding assets, forensic accountants can help uncover them, assess the value of complex properties, and trace any funds that have been mixed together.
What Experts Can Do for You
- Conduct asset tracing to distinguish between separate and community property.
- Value closely held businesses, professional practices, and unique investments.
- Review tax implications of proposed property divisions.
- Testify in court to support your claims.
Working with trusted legal and financial experts can help you build a more clear and accurate financial picture, which is an important part of protecting your assets during a contested divorce.
Hire an Experienced Austin Divorce Attorney for Help Protecting Your Assets During a Contested Divorce
The attorney you choose plays a key role in protecting your assets during a contested divorce. An experienced Austin divorce attorney understands how to navigate complex property division issues, identify red flags like asset concealment, and fiercely advocate on your behalf. If you’re facing a contested divorce in Texas, protecting your assets during a contested divorce starts with the right legal team. Contact Deyerle Silva Smith, PLLC today to schedule a consultation with one of our experienced divorce attorneys. Together, we’ll create a strategy focused on protecting your assets during a contested divorce and securing the best possible outcome for your future.