High-Asset Divorce in Texas

What Makes a Divorce "High-Asset"?

There is no dollar figure in the Texas Family Code that turns an ordinary divorce into a "high-asset" one. What sets these cases apart is complexity — assets that are difficult to value, difficult to divide, or difficult to even locate. When one or both spouses have built real wealth, the property division becomes the center of the case, and small mistakes can have large, permanent consequences.

Our firm regularly handles divorces in Montgomery County, Harris County, and the greater Houston area that involve one or more of the following:

• A closely held business or professional practice
• Executive compensation — stock options, restricted stock units (RSUs), deferred compensation, and performance bonuses
• Multiple real estate holdings, including investment and vacation property
• Substantial retirement, brokerage, and investment accounts
• Separate-property claims that must be traced back to their origin
• Concerns that a spouse is concealing income or assets

Texas Community Property — "Just and Right," Not Always Equal

Texas is a community property state. In general, most property acquired by either spouse during the marriage belongs to the community estate and is subject to division. Property owned before the marriage, or received during the marriage by gift or inheritance, is separate property and is not divided — but the spouse claiming it carries the burden of proving it by clear and convincing evidence.

Importantly, the court does not have to split the community estate 50/50. It divides the estate in a manner it considers "just and right," and it may consider factors such as each spouse's earning capacity, fault in the breakup, health, and who will care for the children. In a high-asset case, characterizing each asset correctly — community or separate — and presenting a persuasive case for a fair division is where experience pays off.

Valuing and Dividing a Business or Professional Practice

A business interest built during the marriage is generally community property, even if it is titled in one spouse's name. Dividing it starts with an accurate valuation, which usually involves a forensic accountant or a certified business valuation expert who examines financial statements, tax returns, goodwill, and comparable sales.

Courts rarely force the sale of a healthy business. More often, the business is awarded to the spouse who runs it, and the other spouse is made whole with offsetting assets — cash, real estate, retirement funds, or a structured buyout. Protecting the value and continuity of a business, while ensuring the other spouse receives a fair share, takes careful planning.

Stock Options, RSUs, and Executive Compensation

Executive compensation is one of the most technical areas of a high-asset divorce. Stock options, RSUs, deferred compensation, and bonuses may be entirely community property, entirely separate property, or a blend — depending on when they were granted and when they vest relative to the marriage.

Texas courts apportion these awards using time-based formulas that separate the community share from the separate share. Doing this correctly requires the grant agreements, vesting schedules, and plan documents — and a lawyer who knows what to ask for. Overlooking an unvested grant can leave real money on the table.

Retirement Accounts, Pensions, and QDROs

The community portion of 401(k)s, pensions, IRAs, and similar accounts is divisible in a Texas divorce. Employer-sponsored plans are typically divided using a Qualified Domestic Relations Order (QDRO) — a separate court order that directs the plan administrator to transfer a spouse's share without triggering early-withdrawal taxes or penalties.

Getting the QDRO right, and coordinating it with the rest of the settlement, matters. A poorly drafted order can delay a transfer for months or create unintended tax consequences.

When a Spouse May Be Hiding Assets

High-asset cases sometimes involve a spouse who understates income or moves money out of view. Texas gives us powerful tools to bring the full picture to light through formal discovery:

• Sworn inventories requiring each spouse to list all assets and debts under oath
• Document requests and subpoenas to banks, employers, and other third parties
• Depositions of the spouse and relevant witnesses
• Forensic accounting to trace transfers, identify undisclosed accounts, and reconstruct income

A spouse who hides or wastes community assets can face real consequences in the property division. If something does not add up, we will find out why.

Why the Right Attorney Matters in a High-Asset Divorce

Attorney Keith Phillips has represented Texas families for over a decade and is a licensed mediator, which means he understands both how to try a contested property case and how to resolve one efficiently when settlement is the smarter path. As a solo attorney, he gives every high-asset case his direct, personal attention — you work with him, not a rotating team of associates.

Our firm also offers flat-fee options for appropriate matters and a genuinely free initial consultation, so you can understand your situation and your options before making any decisions.

Frequently Asked Questions