Asset Valuation During Divorce in Fort Worth
Nilsson Legal Group is Fort Worth’s first choice for all divorce matters. One of the most important decisions you’ll have to make during your divorce is asset valuation and dividing your assets in a “fair and just” manner.
Our divorce lawyers specialize in asset valuation and can help you negotiate fair settlements in even the most complex valuation and division situations. From splitting up a business you and your former spouse started to determining the active and passive appreciation of investments, trust our experienced Fort Worth divorce lawyers to help you walk away from your divorce satisfied.
Assets & Property
The full disclosure of assets and proper valuation of the marital estate are important in all divorce cases, but especially in cases involving multiple, complex assets. At the Nilsson Legal Group, our attorneys work with qualified CPAs, financial planners, business valuation experts, tax professionals, and forensic economists to ascertain the proper valuation of:
- Restricted stock awards
- Commercial property assets
- Business or personal investments
- Tangible and intangible (goodwill) business assets
- Active and passive appreciation of investments
- Compensation packages and pensions unique to executives
- Inheritances obtained during the marriage
We then work closely with clients in negotiating complex property division agreements and spousal maintenance and alimony that protect their individual assets and minimize potential tax liabilities or impact on your credit. We provide the utmost discretion in all aspects of our representation, whether clients are involved in negotiation, mediation or divorce litigation.
Property Inventory and Appraisal
Real estate and residential property valuation in divorce refers to the process of determining the value of real property, such as homes, land, or investment properties acquired during a marriage.
Valuation is crucial for “fair and just” property division between spouses, as property is equal ownership but not always split in half.
Hiring a professional real estate appraiser who specializes in divorce valuations can help determine value through an in-depth analysis of location, size, condition, comparable sales in the area, and any unique features.
Coming to an unbiased account of a property’s fair market value gives a judge a steady start when determining the most fair and equitable outcome for property division.
Valuing of Personal Property During Divorce
In a divorce, personal property generally refers to any movable assets that individuals own, excluding real estate or land.
Personal property encompasses a wide range of items, including but not limited to furniture, vehicles, electronics, jewelry, artwork, collectibles, clothing, and household items. It can also include financial assets like bank accounts, investments, and retirement accounts.
Each spouse’s personal property is evaluated and categorized as either separate or community property based on when the property was acquired. Separate property typically includes assets acquired before the marriage through inheritance or gifts, while community property generally comprises assets acquired during the marriage.
Property Division in Divorce
When it comes to property division in divorce, Texas follows the community property model.
Under the community property model, any property acquired by either spouse during the marriage is generally considered community property, regardless of how it is titled. This means that both spouses have an equal ownership interest in the assets acquired during the marriage.
In the context of asset division during a divorce, the community property model typically involves splitting the community property equally between the spouses. However, it’s important to note that “equal” does not necessarily mean a literal 50/50 division. The court may take into account various factors such as the spouses’ earning capacities, financial contributions, age, health, and other relevant circumstances to determine a fair and just division.
Separate property, which includes assets owned by either spouse before the marriage or acquired through gifts or inheritances, is generally not subject to division and remains with the respective owner.
Asset Valuation & Property Division FAQs
How is business divided in a divorce in Texas?
Since Texas is a community property state, the only time a business must be divided between a divorcing couple is when they created or acquired the business during the time of their marriage.
Keep in mind that all relevant documents must be presented to the courts is a person involved in the divorce claims they owned the company prior to the marriage.
How does a judge divide property in a divorce?
In Texas, any money earned, debt accumulated, property acquired, or real estate purchased during the marriage is considered to belong equally to both spouses. This does not mean that property is instantly divided on a 50/50 basis. The courts must determine that division between spouses is deemed “just and right.”
When determining what is “just and right” with property division, judges typically consider the following factors:
- The length of the marriage
- Reasons behind the divorce
- The difference in earning power between spouses
- The financial and parental responsibilities between spouses
- Education and future employability of each spouse
- Need for future spousal support
An experienced divorce lawyer can help you determine what is actually “right and just” based on the specifics of your marriage.
What happens if I don’t know the value of an asset?
If you don’t know the value of an asset during a divorce, there are a few options to consider.
You can hire a professional appraiser or valuation expert. They can typically help with assessing assets such as real estate, businesses, artwork, or other valuable items. They are an excellent resource because they bring an unbiased opinion on the assets to the negotiation table.
If both parties are willing to work together, mediation or negotiation can help reach an agreement on the value of the asset.
Finally, if you and your spouse are unable to agree on the value of an asset and other methods have been exhausted, you may need to seek court intervention. The court can appoint an expert or rely on other evidence presented to determine the value of the asset.
What counts as a ‘marital asset’?
In a divorce, marital assets are any property or assets acquired by either spouse during the marriage. Some common examples of marital assets include the following:
Real Estate – The marital home, vacation properties, rental properties, or any other real estate acquired during the marriage.
Financial Accounts – Bank accounts, savings accounts, investment accounts, retirement accounts (such as 401(k)s or IRAs), and pensions accumulated during the marriage.
Personal Property – Vehicles, furniture, electronics, appliances, jewelry, artwork, collectibles, and other tangible assets obtained during the marriage.
Business Interests – If either spouse owns a business or has ownership interests in a partnership or corporation that was established or expanded during the marriage, those interests may be considered marital assets.
Debts – Marital debts, such as mortgages, credit card debt, loans, or other liabilities acquired during the marriage, are also typically considered marital assets subject to division.
Do you offer free divorce consultations?
Yes. Every first consultation with Nilsson Legal Group is always free. Contact us today.
Marital Property Division
Nilsson Legal Group is one of Tarrant County’s most trusted divorce laywers. We make it our goal to represent our clients throughout the entirety of their divorce properly and ensure they receive “fair and just” results for all of their wants.
Let the experts of Nilsson Legal Group help you close the book on your latest chapter and give you the negotiating power you need to write your own happy ending.