Division of Marital Assets in Texas Divorce

The Buholz law firm specializes in handling complex property division for families with substantial financial assets. These may include endorsement agreements, executive pay packages, multiple real estate holdings and family-owned businesses. Decisions regarding the division of marital assets should always include consideration of spousal support and the pre-and post-tax implications of your options.

No matter how complex your financial situation, collaborative law and mediation can still be effective, if you and your spouse want to save time and money and believe you can work together to reach an agreement. To the extent possible, we will always explore these options first.

The first step in developing a property settlement agreement is to identify all of the marital assets and obtain a proper valuation of those assets, including:

  • Family home(s)
  • Real estate
  • Personal Property
  • IRAs and SEPs
  • Pension Plans
  • 401Ks
  • Tax Implications
  • Stocks and stock options
  • Annuities
  • Cash value life insurance
  • Retirement Assets

We work with financial experts to document and value marital assets, so we thoroughly understand your current financial situation. This allows us to enter divorce negotiations with the information needed to secure your fair share.

Tax Implications of Property Division

If you and your spouse have a large, complex estate, it is essential to work with a family attorney who has experience handling the division of complex marital assets. Different assets will have significantly different tax consequences upon division, cash-out, or sale. It is important to understand the tax implications early in the property negotiation process so that an equitable property agreement can be reached. We do not give tax advice, but we work closely with your accountant or financial advisor.

Pension Plans and 401Ks: Will you split a retirement plan or a 401K, accept a lump sum payment, or share in actual payments upon reaching retirement age? What are the requirements for an employer-administered pension plan? Is a QDRO (qualified domestic relations order) needed to protect you from incurring taxes that should be the responsibility of your ex-spouse? Steve will thoroughly review the requirements of your pension plan to ensure these issues are considered.

IRAs: Some IRAs provide nontaxable income. Distributions from other types of IRAs, 401Ks, and from all pension plans will be at least partly taxable. We ensure the tax burden has been thoroughly analyzed before a settlement agreement is reached so that you are not unfairly penalized.

Marital Residence: Will you incur capital gains tax when selling your residence? Given the emotional turmoil surrounding a divorce, few people think of the tax consequences of the sale of a home, but we do. We protect our client’s interest in the rollover of capital gains from the immediate or deferred sale of a home.

Business Buy-Out: Properly valuing a business is only the first step. How the buy-out is structured will determine whether it is taxable at the ordinary income rate or the lower capital gains rate.

Spousal Support: There are often trade-offs between the division of marital assets and ongoing spousal support, but these should only be made after understanding both the current and future value of the assets being discussed, particularly in the case of stock options. With complex estates, it is important to consider the tax implications of asset division.