A high-asset Texas divorce requires you to divide more than just bank accounts, cars and real estate. Many marriages accumulate valuable “unique” assets that complicate the property division process.
Most of these items do not have a standard market price, making them difficult to value fairly. Understanding how Texas courts treat these items is essential for protecting your financial future.
The challenge of non-traditional assets
Unique assets introduce a high degree of subjectivity into your divorce proceedings. The value of these items is often unclear, including when a business is involved. Complex high-value marital property can include both business-related and personal assets, such as:
- Art and collectibles: Fine art, antiques, high-end vehicles, rare coins and other specialized collections are often considered marital assets. Their value may reflect both emotional attachment and volatile market prices.
- Intellectual property: IP typically involves a company’s patents, trademarks or copyrights.
A business owned by a spouse before marriage remains their separate property. However, the community estate may have a claim for reimbursement against the company for the value of the community’s (non-owner spouse’s) time, toil, effort or funds that contributed to the growth and enhancement of the separate property business during the marriage.
It is also challenging to value a business’s “goodwill” (reputation and established value) because Texas courts differentiate between enterprise goodwill (which is divisible community property attached to the company) and personal goodwill (which is the individual spouse’s separate property, not subject to division).
The necessity of professional valuations
Standard appraisals cannot capture the complex value of unique properties. Proving the value of these non-traditional assets requires the assistance of certified professionals, including:
- Certified art appraisers, specialized dealers or IP valuation professionals who can determine a fair market value
- Forensic accountants who investigate complex financial holdings, trace separate versus community funds, and assess the tangible value of a business and intangible assets, including the company’s enterprise goodwill
The role of these professionals is to determine the fair market value of the assets, including any enterprise goodwill and the present value of the IP, and to provide admissible evidence to the court.
Secure your marital estate
Texas is a community property state that operates under a system of equitable distribution; therefore, the court must order a division of the community property in a manner that is “just and right,” as mandated by the Texas Family Code, which may result in an unequal division based on factors such as fault or disparity in earning power.
Properly handling unique assets is the most effective way to achieve a fair division of your community estate. In complex divorce cases involving unique, high-value assets, skilled legal guidance is indispensable to protect your rights and financial interests.