Houston Business and Family Law Blog

It seems easier to join property than to separate it, don't you think? Most Texas couples who decide to tie the knot are likely excited about finally sharing the car, the house and the pets that go with it. They probably never dream of some day needing to split everything equally, just like it all was before they got married. 

Property division can be tricky. If you are needing to divide assets you once shared, there are some important things to understand before starting the process.

If you and your spouse are a reasonably high-asset Texas couple contemplating divorce, both of you likely are concerned about how the court will divide your assets if you cannot reach a property settlement agreement on your own. Naturally each of you wants to retain the most assets possible, but you may suspect that your spouse is trying to hide assets so as to skew the division in his or her favor. Asset hiding has gone on for decades, but today’s technology makes it easier than ever to do. Are you familiar with Bitcoin?

BlockGeeks.com explains that Bitcoin is a “brand” of cryptocurrency that first appeared in 2008, making it the oldest and most popular on the market. Cryptocurrencies are virtual currencies, meaning that you cannot see or touch them because they are only computer files. Nevertheless, you can use them just like you do traditional currencies. You can buy and sell Bitcoins; you can invest in them; you can buy many goods and services with them. Scariest of all – or not, depending on your perspective – you can easily hide them.

If you and your spouse are a Texas couple seeking a divorce, you may not know about the acceptance of benefits doctrine. It could, however, become an important aspect of your divorce and its aftermath.

As pointed out by the Texas Supreme Court in the 2017 case of Kramer v. Kastleman, the acceptance of benefits doctrine says that no litigant can treat a court judgment as both right and wrong. Consequently, if you accept the benefits of your property settlement agreement, you cannot later challenge it unless you can show special circumstances.

Dividing a once-shared life is tough. Furniture, homes, vehicles and a multitude of other tangible goods have to split equally between the separating parties. But what happens when the two continue to share one significant asset - the family business? Texas couples should set themselves up for success as much as possible when first establishing a company.

FindLaw suggests either a prenuptial or postnuptial agreement because it allows spouses to predetermine what they consider shared property. Another option is separating personal assets from those of the business by forming a corporation or Limited Liability Company. With this setup, the spouses could maintain their personal property separate from the LLC's, in effect, deciding in advance what they would share and what they would keep separate.