Challenges of Foreign Assets Division in a Divorce

 Posted on September 16, 2024 in Divorce

Dividing property in a divorce can be a complicated and frustrating process. This is especially true in complex divorces, which usually involve high-value or foreign assets. These make a divorce complex because it is often more difficult to divide such property between the two parties.

International assets such as foreign investments, real estate, and bank accounts are challenging to distribute between spouses. This is partly because they are often subject to foreign laws, and partly because some spouses try to hide the assets during the property division stage of a divorce.

To understand the challenges with dividing foreign assets, it is first important to understand how marital property is divided in Texas. Keep in mind that property division is best done with the guidance of an experienced Texas property division attorney.

How is Property Divided in a Texas Divorce?

Property that belongs to both spouses is called community property in Texas. The general rule is that any asset that comes into a spouse’s possession during the marriage is considered community property, though there are some exceptions.

In a divorce, a Texas court will aim to divide the community assets fairly, not equally. The judge will look at several factors before deciding how to distribute property, such as:

• How much each spouse contributed to the asset
• The income of each spouse
• The economic needs of each spouse
• Which spouse has child custody
• Which spouse is paying alimony
• Any other considerations that the judge feels are warranted

What Are the Challenges With Dividing International Assets in a Texas Divorce?

In some complex divorces, one or both of the spouses may own international assets. These can include:

• Overseas bank accounts
• Foreign investments
• Real estate in other countries
• Foreign business interests

When overseas assets are involved, it is often easier for the spouse who owns the assets to conceal their existence or underreport their value. That is why, in many cases, forensic accountants or financial consultants are sometimes brought in to not only appraise the value of the assets but also to ensure they are not being hidden from the court.

Another major challenge with dividing foreign assets in a divorce is jurisdiction. A Texas court has no authority in other countries that would allow it to seize bank accounts or real estate. Therefore, a judge may do one of two things:

• Exercise jurisdiction over the spouse who owns the asset and compel him or her to sell or transfer it
• Award the other spouse a larger share of the domestic assets to compensate for the foreign property

Contact a Galveston County, TX Community Property Division Attorney

Complex divorces typically involve a more rigorous process than others, particularly if international assets are involved. When you work with Daniel R. Bacalis, P.C., you can rest assured that your assets and interests will receive the best protection possible. We are ready to prepare you for every step of the divorce process and guide you through it smoothly. Schedule a free consultation with a Galveston, TX divorce lawyer by calling 409-392-1511 today.