How to Handle a Houston High Asset Divorce
When a marriage is dissolved in Texas, the courts must divide the spouses’ community and quasi-community property in a just and right manner and confirm the spouses’ separate property. To make sure your property settlement is based on accurate information that truly reflects your situation, it is important to have an experienced Houston divorce lawyer on your side.
For couples of high net worth, divorce is a very uncertain time, especially with regard to assets and debts. In order to achieve a fair property settlement, it is important to work with a lawyer who has experience handling large marital estates.
For each spouse, there are likely to be important questions about how to maintain a comfortable lifestyle after divorce. As experienced Houston attorneys, we understand that one of the primary objectives in high asset divorces is asset protection. Our goal is to preserve as much of the estate as possible so that you and your children can have a smooth transition.
We can help you understand your rights and obligations regarding:
- Community property and separate property
- Enforcing or challenging a pre-nuptial or post-nuptial agreement
- Valuation of professional practices and business assets
- Division of retirement accounts, such as 401(k) accounts, IRAs and pensions
- Dealing with hidden assets and marital fraud
- Child support and spousal maintenance/alimony for affluent couples
High Asset Protection and Divorce
Some of the most common and natural questions people have about divorce revolve around what life will be like afterwards. Specifically, what will their lifestyles be like following the process of asset division? Generally speaking, the law tries its best to treat each spouse fairly. But, the system is not perfect, and there are steps you should consider when thinking about how to protect assets for the future.
Pre-Divorce Planning Is Key.
Texas is a community property state, which means that all assets acquired by either spouse during marriage are considered eligible to be divided upon divorce. Therefore, it is critical to structure your marital estate in a way that clearly keeps your separate, individual property apart from community assets.
Working with accountants, QDRO specialists and other financial experts, our legal team can help you take steps to protect your assets and future lifestyle. Examples of the things that must be considered are:
- Making sure gifts are titled in your name only and kept separate so that they remain separate property
- Keeping any inheritance in accounts with only your name and kept separate, as opposed to joint accounts
- Keeping business assets separate from personal assets
- How to handle retirement portfolios and investment accounts
- How should appreciation be handled? What about business goodwill?
- How will alimony and child support payments affect you?
Identifying Community Property
There is a presumption that every piece of property possessed by either spouse during the course of their marriage is community property. However, there are a number of notable exceptions, including:
- Property owned or claimed by a spouse before marriage
- Property acquired during the marriage by gift or inheritance
- Property acquired via the recovery for personal injuries sustained during the marriage, with the exception of any recovery for lost wages resulting from the injury
In identifying community property during a divorce, complications can arise as a result of property that was not community property becoming community property as a result of actions taken during the marriage. For instance, if a spouse refinances a house during the marriage and both names are placed on the new loan, the house is not considered to be community property.
Business Valuation and Property Division Law in Texas
Texas is a community property state, meaning that property accumulated during the marriage generally must be divided evenly between the spouses to achieve a “just and right” division. Under certain circumstances such as a disparity of earnings or a disparity of separate property, a disproportionate division has been found to be justified.
The divorce of high-wage earners often creates additional unique issues and concerns, including:
- Classification of property as separate or community property
- Valuation and division of retirement plans (pensions and 401(k) accounts), stock options and investments
- Valuation and division of real estate
- Tracing intentionally or unintentionally hidden assets
- Potential for existing prenuptial or post-marital agreements
- Valuation of ownership in a family business and division that allows for the business to continue
It is crucial that high net worth individuals have the assistance of attorneys experienced in handling complex property divisions when they divorce.
Complex Divorce Cases
Privacy and release of financial details to the public is a common concern for individuals with high earnings and who have accumulated a high net worth, as divorce settlements are often reflected in records that are available to the public. To accommodate these needs, we are able to negotiate agreements incident to the divorce that will not become public record.
Alternatively, collaborative law and mediation also allow for the parties to create a divorce settlement that better reflects their individual needs and concerns and protects their privacy, all while saving time and money.
Houston High Asset Divorce Lawyer
Some of the most common and natural questions people have about divorce revolve around what life will be like afterwards. Specifically, what will their lifestyles be like following the process of asset division? Generally speaking, the law tries its best to treat each spouse fairly. But, the system is not perfect, and there are steps you should consider when thinking about how to protect assets for the future.
It is essential to choose a divorce lawyer who has experience with high asset divorces. They could help you with mediation so that you may reach an out-of-court settlement and possibly save a lot of money. If an agreement is not reached, your attorney will need to be ready to present financial evidence at trial. Throughout this trying time, your divorce lawyer will be by your side and a source of support. When looking for a lawyer, look for someone who not only has experience, but also has a track record of success.