Preparing for a Texas Divorce: Assets
Going through a Divorce is painful no matter what the circumstances are. Before you get into the Texas Divorce Process, reduce expense, stress and conflict by making sure you are financially prepared. Planning ahead helps you in making sound decisions, start preparing for post-divorce life, and avoid many post-divorce pitfalls. Below is a list of items you need to gather before counseling with an attorney. Financial Documents are a must to show what your true assets and liabilities are in your marriage.
We have included many assets that you may or may not have. This is only a financial checklist of multiple assets for your review so you will not miss an important asset that needs to be reported.
1. Tax Returns (at least three years) or Tax Liens and all IRS related documents
2. Wills and Trusts with all attachments reflecting corpus and trust holdings
3. Listing of all liabilities (including mortgages, credit card debt, personal loans, automobile loans, etc.):
—Name of entity, address and telephone number
—Property securing payment (if any)
—Most current statements and account status of lenders
4. A Listing of all Real Property, address and location, including (includes time-shares and vacation properties):
–Deeds of Trust
—Notes including equity loans and second liens
—Mortgage Companies and Loan Servicers (Name, Address, Telephone Number, Account —Number, Balance of Note, Monthly Payments)
—Current fair market value
5. Motor Vehicles (including mobile homes, boats, trailers, motorcycles, recreational vehicles; exclude company owned):
—Name on title
—Fair Market Value
—Name of creditor (if any), address and telephone
—Persons listed on debt
—Balance of any loan and monthly payment
—Net Equity in vehicle
6. Cash and accounts with financial institutions (checking, savings, commercial bank accounts, credit union funds, IRA’s, CD’s, 401K’s, pension plans and any other form of retirement accounts):
—Name of institution, address and telephone number
—Amount in institution on date of marriage
—Amount in institution currently
—Names on Account
—Company loans and documents related to benefits
7. A listing of separate property (property owned prior to marriage, family heirlooms, property gifted, inherited property):
—Records that trace your separate property. These assets will remain yours if properly documented
8. Retirement & Pension Benefits:
—Exact name of plan
—Address of plan administrator
—Starting date of contributions
—Amount currently in account
—Balance of any loan against plan
9. Publicly traded stock, bonds and other securities (including securities not in a brokerage, mutual fund, or retirement account):
—Number of shares
—Type of securities
—In possession of
—Name of exchange which listed
—Pledged as collateral?
—Current market value
—If stock (date option granted, number of shares and value per share)
—Stock options plans and related documents
10. Insurance and Annuities Policies and Inventory:
—Name of insurance company
—Type of insurance (whole/term/universal)
—Amount of monthly premiums
—Date of Issue
—Cash surrender value
—Current surrender value
—Other policies and amendments
11. Closely held business interests:
—Name of business
—Type of business
—% of ownership
—Number of shares owned if applicable
–Value of shares
—Balance of accounts receivables
—Cash flow reports
—Balance of liabilities
—List of company assets
—Possible hobbies or side businesses that generate income
12. Mineral Interests (include any property in which you own the mineral estate, separate and apart from the surface estate, such as oil and gas leases; also include royalty interests, working interests, and producing and non-producing oil and gas wells:
—Name of mineral interest
—Type of interest
—County of location
—Name of producer/operator
—Current market value
—needs leases or production documents related to the asset
13. Money owed by spouse (including any expected federal or state income tax refund but not including receivables connected with any business)
14. Household furniture, furnishings and Fixtures
—purchase receipts and documents
15. Electronics and computers including software and hard drive
16. Antiques, artwork and collectibles (including works of art, paintings, tapestry, rugs, crystal, coin or stamp collections) Other large collections need to be appraised! (Guns, quilts, action figures, books)
17. Miscellaneous sporting goods and firearms
18. Jewelry including appraisals
19. Animals and livestock
20. Farming equipment
21. Club Memberships
22. Safe deposit box items
23. Burial plots including documents of ownership
24. Items in any storage facility
25. Travel Awards Benefits (including frequent flyer miles)
Divorce, in many cases, has a life-altering impact on a child’s development and well-being. Given that one out of every two marriages ends in divorce, thousands of children are impacted each year. Divorce places enormous stress on a child trying to adjust to new feelings and rapidly changing situations in their lives. The resulting instability often leads to resentment towards the child’s parents and a difficulty acclimating to all the abrupt and immediate changes in a child’s life.
Children perceive divorce as a very traumatic event and are very concerned about their security. Many children internalize the dissolution and blame themselves for the breakup. They are scared that both parents may leave them.
Some very disturbing research on children and divorce has just been released by the Census Bureau Study, “The Marital Events of Americans: 2009”.
*1.5% of US children live in the home of a parent who divorced in the last year. The average age of the child is 9.8 yrs. old and the male/female ration is 1:1.
*64% of the children were White, non- Hispanic children, with the largest percentage living in the South (41%).
*Children living with a divorced parent are likely to be in a household below the poverty level (28%) and more likely to be living in a rented home (53%).
*Most children live in a mother headed households (73%). Because mothers have lower earning potential in the labor force, the family often lives below the poverty level.
*These children of divorce are often living with their parents’ unmarried partner (13%). Only 5% of the children are living in a household with a married couple.
Children of divorce often suffer from anxiety, depression and reduced self-esteem issues. Robert Hughes, associate professor in the Dept. of Human Development and Family Science, Ohio State University, found that children from divorce are more aggressive and more likely to get in to trouble with school authorities or police during adolescence. Also children from divorce are more vulnerable to becoming a victim of violence or become a perpetrator of violent acts on themselves and or others.
If you are considering divorce, carefully consider the impact on your children. To help children through this difficult time, parents must realize and accept that they are responsible for this situation and that their children often suffer as a result of the parent’s decision.
Parents should be very sensitive to the child’s emotional needs to ensure the best possible adjustment of his or her mental, physical, spiritual well-being towards a healthy, responsible adult. Remember! Your child is the “Innocent Bystander.”
Seek professional help if you child is struggling with the changes in his or her life. Your attorney knows a resource that may be available to address your child’s pressing needs.
When you think of domestic violence or Intimate Partner Violence between couples what usually comes to mind? A woman being hurt or abused? This is the majority of public thought in the United States, yet the latest studies on domestic violence are showing a new and very alarming trend: notable rising rates on Intimate Partner Violence against Men.
In 2010, the Centers for Disease Control and Prevention (CDC) released a National Intimate Partner and Sexual Violence Survey. This was a serious eye opener on violence and men. In the United State for the previous 12 months, app. 5,365,000 men had been victims of intimate Partner physical violence compared with 4,741,000 women. This physical violence includes slapping, pushing, & shoving. Also tracked were more serious threats of being beaten, burned, choked, kicked, slammed with a heavy object or hit with a fist. Roughly 40% of the victims of severe physical violence were men. Again in 2011 the CDC repeated the survey and the results were almost identical!
Domestic violence (intimate partner violence) against men include emotional, sexual, verbal, physical abuse or threats of abuse. It happens in heterosexual and same-sex relationships. Have you ever felt scared of your partner and changed your behavior since you were afraid of what your partner might do? If so, you may be in an abusive relationship.
Are you being abused? What are the warning signs? What kind of abuse are you experiencing?
Emotional & Verbal Abuse:
- Calls you names, belittles you, or puts you down regularly
- Is jealous and possessive and accuses you without just cause of being unfaithful
- Tries to isolate you from family and friends
- Tries to totally control your life: how you spend your money, what you wear and where you may be going
- Constantly makes unreasonable demands for your attention.
- Blames you for her violent behavior and says you deserve it
- Gets very angry or violent when drinking alcohol or using drugs
- Biting, burning, or choking you
- Hitting, punching, or slapping
- Pushing, shoving, or throwing things at you
- Knifing or burning you
- Forcibly holding you down
- Hurting you, your children or your pets
- Forcing you to have sex or engage in sexual acts against your will
- Hurting you during sex
- Forcing you to have unsafe sex
Threats and Intimidation:
- Threatens to hurt / kill you
- Threatens to kill themselves or the children
- Stalks you
- Reads all your emails, texts, or mail
- Destroys things that belong to you
Being a man in an abusive relationship, it may seem hard finding the help that you need. It has been estimated that about 20% of men who call the police to report an abusive spouse /partner are themselves arrested for domestic violence.
You do not have to stay in an abusive relationship. You need to start by discussing your situation with either someone you trust or a health professional who can give you guidance. Gather evidence on what is happening, photographs of any injury or bruises experienced during a confrontation, threatening emails or texts that can be used in a court of law, make a list of people who have experienced confrontations between you and your intimate partner.
Stay away from any type of violence with your partner since she may try to put you into a damaging situation with the police to make you look like the abuser or try to entrap you.
You can overcome these challenges and escape from the abusive intimate partner. If you have a family or are concerned for your well-being, contact a legal professional who can help you break from this situation and also work to get your children out of harm’s way. Just remember, if you are not available for her domestic violence, a predator will look for someone else to take your place and children are easy targets!
The holidays can be very frustrating times for both spouses when undergoing divorce proceedings that involve custody issues with children and one spouse acts in bad faith or arbitrarily. If a spouse violates a temporary custody order, he or she may not face consequences at the time but must explain their actions to a district judge in the future.
If a temporary custody order describes in detail the periods of possession during the Christmas holiday, the order is binding on both spouses. The temporary custody order is binding civilly and NOT criminally per se. This is an important distinction to understand before you decide to call the police. Family law matters, with notable exceptions such as domestic violence and protective orders, are generally governed in civil and not criminal courts. Because temporary custody orders involving children are governed by civil courts, a police officer has no immediate basis to enforce the civil order.
If your spouse refuses to release your child to you at the prescribed time mandated in the temporary custody order, there are certain things that you should do to insure this wrongful conduct properly is documented for future civil contempt proceedings.
- Call the police!!! Many police departments will not respond because temporary custody orders are not criminally enforceable, but if the police department decides to respond then you may request a police report to be filed noting that your spouse deliberately violated the temporary custody order. This may be used in Court to persuade the judge to hold your spouse in civil contempt or validate your properly made demand for access in accordance with your temporary order.
- Save and preserve any text messages, emails, letters, or recorded phone calls that demonstrate and reaffirm your spouse’s refusal to deliver your children into your custody during the holiday or other allotted time in your visitation order.
- Call your attorney and notify him of your spouse’s refusal to deliver the children to you.
- Do not be tricked or cohered into a physical confrontation with your soon to be ex-spouse!!!
By completing these four tasks you will be gathering and preserving evidence to hold your spouse in civil contempt of Court. After the Christmas Holiday season or other access periods are over, your lawyer with your consent will file a motion to hold your spouse in contempt of Court for violation of the temporary custody order. If your spouse is found in civil contempt of Court, he or she may be fined, ordered to jail for up to 180 days until the fine and attorney fees are paid, and the violation may be a solid basis to favourably modify the previous temporary custody orders. Such rulings are at the judge’s discretion.
Though you may feel helpless at the time, justice may be achieved through the District Courts in the form of civil or contempt sanctions. Judges usually look down on a spouse that blatantly violates temporary custody orders especially during Christmas or other special holidays. Just relax and be patience if your spouse refuses to deliver the children to you and document the conduct. Justice may take time but in the end, it is usually affirmed.
The Nacol Law Firm P.C.
8144 Walnut Hill Lane
Dallas, Texas 75231
Texas law requires trial courts to divide the estate of the parties in a manner that is just and fair having due regard for the rights of each party and any children of the marriage. Tex. Fam. Code Ann. 7.001. A disproportionate division must have a reasonable basis. Smith v. Smith, 143 S.W.3d 206, 214 (Tex. App. – Waco 2004, no pet.). The trial court has broad discretion in determining the disposition of property in a divorce action. If there is some evidence of a substantive and probative character to support the division, the trial court does not abuse its discretion if it orders an unequal division of marital estate. However, the division should not be a punishment for the spouse at fault. There is a difference between making a just and right division of the property with due regard for the children of the marriage and punishing the errant spouse. In general, the trial courts in Texas have perceived this distinction.
Generally, in a fault-based divorce, the court may consider the conduct of the errant spouse in making a disproportionate distribution of the marital estate. Young v. Young, 609 S.W.2d 758, 761-62 (Tex. 1980). This does not mean that fault must be considered.
The Texas Family Code sections 3.02 and 3.07 provide six circumstances when a divorce decree may be granted in favor of one spouse. These include the traditional fault grounds for divorce of cruelty, adultery, and abandonment. These sections were codified by the Legislature into the Family Code along with section 3.01 which provides for “no-fault” divorce based on insupportability because of discord or conflict of personalities that destroys the legitimate ends of the marriage relationship and prevents any reasonable expectation of reconciliation.
Texas courts have considered the following factors when equitably dividing a community estate:
- fault in breakup of the marriage;
- the benefits that the innocent spouse would have derived had the marriage continued;
- disparity in the spouses’ income and earning capacities;
- each spouse’s business opportunities;
- differences in the spouses’ education;
- physical health and need for future support;
- the relative ages of the parties;
- each spouse’s financial condition and obligations;
- the size of each spouse’s separate estate and any expected inheritance;
- the nature of the spouses’ property;
- the rights of the children of the marriage;
- waste of community assets or constructive fraud against the community;
- gifts by one spouse to the other; and
- tax liabilities.
The court need not divide the community estate equally. Smallwood v. Smallwood, 548 S.W.2d 796, 797 (Tex. Civ. App. – Waco 1977, no writ). The court has a broad discretion in making a just and right division, and absent a clear abuse of discretion, such decision will not be disturbed. Murff v. Murff, S.W.2d 696, 698-99 (Tex. 1981); Boyd v. Boyd, 131 S.W. 3d 605, 610 (Tex. App. – Fort Worth 2005, no pet.)
When there is no evidence or insufficient evidence to support the property division or an award of attorney’s fees, the appellate court must reverse or remand such decision for a new trial. Sadone v. Miller-Sadone, 116 S.W.3d 204, 208 (Tex. App. – El Paso 2003, no pet).
A party who seeks to assert the separate character of property must prove that character by clear and convincing evidence. Clear and convincing evidence is that measure or degree of proof that will produce in the mind of the trier of fact (judge or jury) a firm belief or conviction as to the truth of the allegation.
In a popular decision Phillips v. Phillips, 75 S.W.3d 564 (Tex. App. – Beaumont 2002, no pet.), Chief Justice Walker opined that because legislature has now authorized “no fault” divorce, fault could no longer be considered in dividing community estate. However, In Re Brown, 187 S.W.3d 143, 2006 Tex. App. LEXIS 686 (Tex. App. Waco 2006) states that what is “just and right” in dividing the property should not depend on the ground on which the divorce is granted; the just and right division of property is separate from the dissolution issue. If one spouse’s conduct causes the destruction of the financial benefits of a particular marriage, benefits on which the other spouse relied, a trial court should have discretion to consider that factor in dividing the community estate – regardless of the basis for granting the divorce.
To prove a disproportionate division of assets in a divorce case, counsel must put on clear and convincing evidence. Without such support, there will be no disproportionate division of community estate. The circumstances of each marriage dictate what factors should be considered in the property division upon divorce.