Offshore Accounts and International Assets in Divorce

As globalization increases and more families conduct business or hold property abroad, divorce proceedings frequently involve assets located outside the United States. Offshore accounts and international assets in divorce present distinctive challenges, including locating and valuing property in foreign jurisdictions, overcoming legal and practical barriers to enforcement, and determining how these assets fit within Texas’s community property framework. If you intend to end your marriage and want to learn more about the treatment of offshore accounts and international assets in divorce, it is wise to speak with an attorney. The skilled Dallas divorce attorneys at McClure Law Group are experienced in handling cases involving cross-border financial issues, and if we represent you, we can help you protect your rights.

Under Texas law, courts are required to divide community property in a manner that is “just and right,” but before that can happen, all marital assets must first be identified and characterized. Offshore accounts and international assets in divorce often present obstacles at this early stage. A spouse may fail to disclose accounts held in a foreign bank, real estate located abroad, or ownership interests in international business entities. In such cases, it may be necessary to employ forensic investigators, financial experts, or legal processes such as subpoenas and court orders to uncover hidden or undisclosed property.

Once international assets are identified, courts must determine whether they are separate or community property. Under Texas law, property acquired before the marriage or by gift or inheritance remains separate, while most property acquired during the marriage is presumed to be community. The fact that property is held abroad does not change this analysis. If a couple acquired a condominium in Europe or an investment account in Asia during their marriage, for example, it is likely to be considered community property, subject to division by the Texas court.

After international assets have been identified and characterized, the next step is valuation. Unlike assets located in the United States, foreign property may be subject to different market conditions, regulatory frameworks, or access restrictions that complicate valuation. Real estate values, currency fluctuations, and local business conditions can all affect how international holdings are appraised in a divorce proceeding. Courts may require expert testimony to determine the fair market value of these assets in a manner consistent with Texas standards.

Once offshore accounts and international assets in divorce have been properly valued, the court must determine how to equitably divide them. Courts are not limited to dividing each asset in kind but instead may award entire assets to one spouse and offset that award with other property of comparable value. For example, a spouse may be awarded an international account in its entirety, while the other receives a greater share of U.S.-based property. This flexible approach helps courts address practical limitations on enforcement and avoid the logistical difficulties of jointly held foreign property.

Even when a Texas court has the authority to divide foreign property, enforcing that judgment in another country can be difficult. Some foreign jurisdictions may not recognize or enforce a Texas divorce decree, while others may require additional legal steps, such as domesticating the judgment in a local court. In situations involving offshore accounts and international assets in divorce, courts may exercise caution in how they structure the division of property to ensure that it is practical and enforceable. In certain cases, the court may award U.S.-based property to compensate a spouse for international property that is difficult to divide or control.

When a divorcing couple’s estate includes property outside the United States, additional legal complexities must be addressed to ensure a fair division. Offshore accounts and international assets in divorce require strategic planning, attention to detail, and a firm understanding of both Texas law and cross-border legal principles. If your divorce involves property or financial accounts in another country, it is advisable to speak with an attorney regarding how to protect your interests. The knowledgeable Dallas divorce attorneys of McClure Law Group are proficient at handling complex dissolution proceedings, and if you hire us, we will work tirelessly to help you seek a just resolution. Our main office is in Dallas, and we are available by appointment at our Collin-County office in Plano. We frequently assist clients in divorce matters in Dallas, Fort Worth, Garland, McKinney, Richardson, Frisco, Irving, and Rockwall. We also represent clients in family-law disputes throughout Dallas, Collin, Tarrant, Denton, Rockwall, and Grayson Counties. To schedule a confidential consultation, call us at 214.692.8200 or fill out our online form.