Valuing Complex Property during a Divorce

Some couples that divorce may have problems dividing property if they have complex assets or finances. For example, if there is a business, complex investments like stock options or pension funds, or difficult tax issues, both spouses will need to do extra work in order to be able to arrive at a fair divorce settlement. A Houston property division attorney can provide the expertise and resources you need to receive a fair division of property in a divorce.

How to Approach Complex Property in a Divorce

There are two steps to dealing with complex property during a divorce. The parties must first identify the property. Sometimes one side may mistakenly believe that certain property is exempt from divorce proceedings or he or she may simply overlook property if it is something out of the ordinary. In the worst-case scenario, one side may even deliberately hide assets, fail to disclose them, or transfer them away. Such fraud is grounds for lawsuits after the divorce.

Once the spouses have properly identified and disclosed their assets and liabilities, the second step is valuing those items. What makes property complex is arriving at a value for the property. Household items can be easy to value. The couple can often just come to an agreement as to the value of towels or kitchenware. Even for larger items, such as a car or a house, valuations can be straightforward if the financing was straightforward and the paperwork is readily accessible.

In other instances, however, valuation is far from straightforward. In these cases, a spouse should consult a Houston divorce lawyer. The following are examples of complex property issues for a divorce:

• Self-employed workers. When spouses are self-employed or work largely in cash, there is less of a paper trail. There are no receipts, bi-weekly paychecks, or account statements that make it easy to value current income or predict it in the future. Divorce issues like property division, child support, and spousal support all hinge on a spouse's income level.
• Co-mingled assets. These are particularly complex when a couple has been married a long time. It can be difficult to separate which assets belong to whom in joint financial accounts that the couple has been using together for years.
• Unusual assets. Whereas there is a market for typical assets like homes, cars, and even boats, there is less of a market for unusual items like rare paintings, antiques, or other collectibles. Because there is less of a market, arriving at a fair value of this property can be difficult. Spouses can use a mutually agreed upon appraiser, or they will each have their own appraiser attempt to value the property.
• Businesses. Valuation will depend on factors like the role that each spouse played in the business, the existence of a prenuptial agreement, and the financial strength of the business. Other considerations include whether to sell the business in a divorce, how to split the proceeds, and what percentage ownership each spouse should retain.
• Investment and retirement assets. Certain investment items can be extremely complex. Financial experts can arrive at widely different valuations for things like unused stock options or pension plans set to begin payment in 30 years. Your attorney's goal should be to value you or your spouse's complex investment assets so that the divorce property division is fair.

Dividing complex property during a divorce demands an experienced family law attorney. It can require financial experts, appraisers, and a lot of research in order to obtain your fair share of property. Contact a Houston property division lawyer at John K. Grubb & Associates, PC if you are entering into divorce proceedings and have substantial and complicated assets or liabilities.