Complex Property Division

To prove that certain assets are your separate property during a divorce, you will need to provide clear and convincing evidence through documentation.

This documentation should establish that the asset in question was acquired before the marriage, inherited, or received as a gift. The following are key documents that can help you prove separate property:

Title Documents

• Deeds and Titles: These are critical for proving ownership of real estate or vehicles acquired before the marriage.
• Bills of Sale: Documents showing the purchase of assets before the marriage.

Financial Records

• Bank Statements: Statements from accounts that existed before the marriage can show that funds were kept separate from community property. All statements from prior the marriage to date would be needed.
• Investment Account Statements: Documents showing the ownership of stocks, bonds, or other investments prior to marriage. All statements from prior to the marriage to date would be needed.
• Loan Documents: If you had any debts before marriage, loan agreements can demonstrate their origin.

Inheritance and Gift Documentation

• Wills or Trust Documents: If you inherited assets, these documents will show that the inheritance was intended solely for you.
• Gift Receipts or Letters: Documentation that gifts received during the marriage were intended as your separate property.

Property Appraisals

• Valuation Reports: Appraisals conducted at the time of purchase or at the start of the marriage can help establish the value and ownership of property.

Prenuptial or Postnuptial Agreements

• Legal Agreements: These documents can explicitly define what is considered separate property, helping to avoid disputes during a divorce.

Tax Returns

• Tax Filings: Previous tax returns can be useful to show ownership of assets prior to the marriage.
• Purchase Receipts: Original purchase receipts for valuable items like jewelry, artwork, or collectibles acquired before marriage.

Trust Documentation

• Trust Agreements: If assets are held in a trust, these documents can show that the trust and its assets are separate from community property.

Having these documents organized and ready is essential in making a strong case for the characterization of assets as separate property. An experienced attorney can help you gather the necessary documentation and work with forensic experts if needed to trace and protect your separate property during the divorce process.

A divorce becomes complex when it involves high-value assets that require specialized expertise to accurately evaluate and divide. In Texas, all property acquired during a marriage, unless acquired by inheritance or gift, is classified as community property, which must be divided equitably during a divorce. However, when the marital estate includes assets that are difficult to value, such as business interests, executive compensation, or commingled property, the division process can become particularly challenging.

Complexity arises in various forms. For instance, business valuations require an in-depth analysis of current worth, future earnings potential, and intangible assets like goodwill. Similarly, accurately categorizing property as either community or separate is crucial, especially when dealing with assets that have been mixed over time.

Other factors contributing to a complex marital estate include executive compensation packages, and pension plans, all of which may require specialized appraisals and financial expertise. Given the intricacies involved, it is essential to work with an attorney experienced in complex property solutions. This ensures that all assets are meticulously identified, properly valued, and divided in a way that safeguards your financial interests.

A tracing expert is a specialized forensic professional who plays a crucial role in complex property division cases, particularly those in high-net worth divorces. Their primary function is to identify, track, and document the transformation of separate property over the course of a marriage. This process is essential when a spouse claims that certain assets should be characterized as separate property—property owned before the marriage or acquired through inheritance or gifts during the marriage—rather than community property, which is subject to division upon divorce. A tracing expert must meticulously document the origin and movement of funds to prove that they retain their separate property status, based upon tracing rules in family law. Without clear and convincing evidence, which is often documented by a tracing expert, it can be challenging to convince a court that certain assets should not be divided as community property or awarded as separate property.

Whether you need a tracing expert ultimately depends on the complexity of your marital estate and the extent to which separate and community property have been mixed or transformed during the marriage. If your case involves substantial assets, long-term marriages, or significant commingling of funds, a tracing expert can be helpful. They not only help build a solid case by providing clear evidence but also add credibility to your claims during mediation or trial. At Duffee + Eitzen, our team is well-versed in working with tracing experts to ensure that your assets are accurately characterized and your financial interests are protected throughout the divorce process.