What is Considered a High-Conflict Divorce?

A high-conflict divorce is a typical outcome of a bitter and tumultuous marriage. These types of divorces can have far-reaching effects on the family, especially on any children involved in the union. They are characterized by prolonged legal battles and emotional and psychological turmoil. When two parties are at such great odds, every step of the process is often wrought with contention.

To better understand a high-conflict divorce, we must first discuss the legalities associated with the typical divorce process.

How are Assets Divided During Divorce?

During a Texas divorce, assets are divided based on the principle of equitable distribution, which bases asset allocation on what is fair and reasonable but not necessarily a 50/50 split. Assets and debts acquired during the marriage are considered community or marital property and are the only property subject to equitable distribution.

Examples of marital property may include but are not limited to the following:

  • Family homes
  • Business interests
  • Automobiles
  • Furniture
  • Real estate
  • Jewelry and art
  • Checking, savings, or other financial accounts
  • IRAs, 401ks, pension plans, or other retirement accounts

Separate property, or property that was owned by either party prior to the marriage, is generally not divided upon divorce. Texas Family Law has outlined a brief criteria of what constitutes separate property:

  • Property owned or claimed by either spouse prior to marriage
  • Property acquired by either spouse during marriage by way of gift, devise, or descent
  • Recovery for personal injuries sustained by either spouse during marriage, except any recovery compensation for loss of earning capacity during the marriage

Why is Asset Disclosure Important During a Divorce?

The cornerstone of asset division during divorce in Texas is based on what is “just and right” for both parties. To accomplish this, full asset disclosure is required for fair division to be achieved. Full financial disclosure has the following benefits:

  • Promotes transparency: Both parties are privy to the other’s financial situation
  • Fraud prevention: Disclosure deters either party from hiding or misrepresenting assets
  • Aid negotiations: A clear financial representation will assist in asset division and determining spousal or child support

A judge will request a complete list of assets to determine property allocation. Many factors are considered during the division of assets process, such as:

  • Length of marriage: For shorter marriages, or marriages lasting less than five years, assets will be divided with the goal of returning each party as closely as possible to their financial state prior to marriage. For longer marriages, or marriages lasting over ten years, each spouse’s contributions over time are considered.
  • Fault of either party: In certain cases, the party whose negative actions led to the deterioration of the union is taken into consideration. For instance, a spouse who committed infidelity or violated the terms of a prenuptial agreement may be awarded less of the marital estate.
  • Misappropriation of marital assets: A court is also likely to consider instances where one spouse inappropriately uses joint funds for personal gain without the knowledge or consent of the other party. This may result in a greater portion of the marital estate being awarded to the non-offending spouse to compensate for the wrongdoing.
  • Health of both parties: The physical and emotional well-being of both spouses is considered so that significant health needs may be met with funds from the marital estate.
  • Education and earning capacity of both parties: When one spouse has a higher level of education or may be more likely to earn a higher income than the other spouse, the court may award a higher proportion of assets to account for that disparity.
  • Liabilities: A court will also consider the tax implications that accompany asset distribution for both parties, as well as debts and unpaid taxes.
  • Value of each spouse’s separate property: If one party has significantly more separate property, then they are less likely to receive a larger percentage of the marital property.

What Must be Disclosed During Divorce?

Extensive and exhaustive disclosure of assets is required to ensure that significant assets and liabilities are considered. Such disclosures include but are not limited to the following:

  • Real property information, including deeds, liens, and leases for homes, vacation properties, or rental properties
  • Pension and retirement information
  • Insurance policy information, including life insurance, health insurance, and car insurance policies
  • Banking details from checking, savings, and investment accounts
  • Federal Tax information, including income sources, tax liabilities, and potential tax obligations
  • Income details, including pay stubs, bonuses, and other employment benefits

What are the Consequences of Hiding Assets?

Full financial disclosure is critical during divorce proceedings. Failure to do so can have far-reaching consequences, both legally and on the divorce’s outcome.

Legal consequences include:

  • Contempt of court: Willful failure to disclose an asset or commission of fraud can lead to fines or even jail time
  • Financial sanctions: A dishonest party may be ordered to pay sanctions, such as the other party’s attorney’s fees, due to non-disclosure or misrepresentation of assets
  • Award of assets: A court may award the undisclosed or falsely presented asset to the other spouse
  • Nullification of prior agreements: Once a hidden asset is revealed, any previously agreed upon settlement may be modified or null.

Consequences on the divorce process include:

  • Delayed proceedings
  • Loss of trust
  • Increased legal fees
  • Emotional fatigue

Do I Need an Attorney?

If you are in the middle of a contemptuous divorce, you need aggressive legal representation that will ensure your needs are met and your concerns are heard. Call Cutrer Law Group today at 817-854-1651 or fill out a contact form to schedule a free consultation.