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Larger Sums Lead to Various Issues
Divorce, already a complex subject, can become even more challenging when additional levels of assets and net worth become involved in the process. Those with this level of worth should give additional thought to asset division, community property and separate property, and other issues that could impact them financially. Individuals with a higher net worth should seek the help of an attorney capable of handling issues related to high-asset divorce in order to protect their professional and financial interests.
If you are a higher net worth individual getting ready to go through a divorce, here are some things to keep in mind as it relates to your finances.
The Types and Number of Assets You Have
One of the key considerations you should give attention to is the necessity of accurate asset count and valuation. In order to ensure accurate property distribution during your divorce, it is critical that all of your assets are both accounted for and accurately assigned worth.
High-asset individuals may have numerous types of assets accumulated, including the following:
Trusts.
Real estate assets.
Stocks, mutual funds, bonds, cryptocurrencies, and other investments.
Business or professional practice.
Hiring a professional to calculate the value of your assets for documentation purposes not only provides you with a rough estimate of what you could walk away with after your divorce is finalized, but preparing a detailed inventory can also protect you from the possibility of missing an asset during the course of preparation. A hidden asset can potentially lead to devastating consequences and could ultimately damage your final settlement.
Texas Community Property Law
Coupling with the necessity of accurate asset documentation and valuation is understanding how property division works in Texas. Texas is a community property state, meaning that any and all assets acquired during the time that a couple was married are subject to division during divorce. This law is in effect for all divorces but is of higher concern for those with a larger number of assets.
For example, if you started a business prior to getting married, then that asset is separate property and is not divided during the divorce (although additional factors such as the value of the business are still taken into consideration). However, if you started that business with your spouse, then that business is a community asset and will be divided.
According to Texas law, a judge presiding over a divorce case will divide property in a “just and equitable manner.” This means that there is a possibility that the judge may divide property equally between you and your spouse, and additional factors may influence a judge’s property determinations.
For those with a larger number of assets, this property should be cause for concern. It is crucial to seek out an attorney capable of representing you in a high-asset divorce.
Protecting What Is Rightfully Yours
No one wants to lose anything they have worked hard for during a divorce, which is why those who have a higher net worth should take the necessary steps to protect themselves and their financial interests. As mentioned, hiring a professional to help you document and value all of your assets can assist in painting a picture of what your life could look like after divorce as well as protect you from accidentally hidden assets.
In addition, hiring an attorney for divorce with experience handling high-asset divorce cases should be one of your top priorities early in the process. Your attorney can be a great help in protecting your interests and help you obtain the best possible outcome in your high-asset divorce.
At Law Office of Mark M. Childress, we work hard to fight for our clients’ rights to their assets. We want to help you protect what is yours. If you have questions or would like to set up a consultation to discuss your options, contact us today at (817) 497-8148 or visit us online.