Over the years, you and your husband have worked together to create a life. That life often includes a home, assets, and even a profitable business. So what happens when things are no longer working out? Do you feel stuck in your marriage because you’re worried about how your life may change regarding the wealth you’ve accumulated together? Fears of losing everything shouldn’t keep you in an unhappy marriage. That’s where speaking with a high net worth divorce lawyer can be helpful.
What Complicates a High Net Worth Divorce?
A divorce is a complicated event, no matter the financial situation. There are some situations that can turn a divorce into an even bigger headache when it comes time to split the marital assets. Some circumstances that can cause the divorce to be more complex include:
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Income inequality between spouses
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Owing taxes
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Owning multiple properties, such as rental properties and vacation homes
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Having foreign assets
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Expensive antiques, art, and jewelry
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Owning a business
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Rights and royalties for a variety of commodities
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Selling a business
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Financial instruments that change value, such as cryptocurrency, stocks, and bonds
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Retirement accounts
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Spouses that try to hide assets
Adding any of these circumstances can make it hard to determine the value of the marital assets, which can cause a divorce to have even higher stakes for the couple.
Understanding Community and Separate Property
Texas is considered a community property state, and that law guides how assets will be divided during a divorce. There are two types of property when it comes to the division of assets in Texas: community and separate property. The term community property is in reference to all of the assets that have been built throughout the marriage. Some examples of community property include bank accounts, homes, furniture, cars, and any other property accumulated over the years. The courts view all of these assets as equally owned by both you and your spouse unless it’s considered separate property.
Separate property is in reference to all of the assets that were acquired before the marriage or during the marriage that wouldn’t be considered equally owned by both parties. For instance, payments from a personal injury suit or a life insurance payout after the death of a parent. In order for the courts to consider something separate property and not include it in the community property equal split, there needs to be evidence that it should be excluded from the shared marital estate.
How Are Assets Divided?
In a state like Texas, where community property is the law, assets would be divided equally among the spouses in most situations. However, when it comes to high net worth divorces, there are often disputes on what property should be shared. Each party involved in the divorce wants to ensure that they leave the marriage with their fair share of the marital assets. An experienced divorce attorney will assist in ensuring that you’re protected as much as possible, and they’ll fight to ensure that your separate assets remain separate.
What If The Assets Were Mine Before Our Marriage?
The key to protecting any assets that belonged to you before the marriage is having a preponderance of evidence that those assets should be considered separate property. Proving that these assets should be regarded as yours alone can help protect them from being part of the community property to be split equally.
What Happens to Our Business?
A family business can also complicate a high net worth divorce and will be considered community property in the divorce. As with all other assets, a fair market value will be determined for the business. Which will then determine how much equity value is added to the community property to be split. The value placed on the company will determine how much equity is paid.
What About Spousal Support?
Another big question that can come up when it comes to considering divorcing your husband is how spousal support works. In many cases, spousal support is only granted in cases where the spouse seeking the payments cannot provide their own financial resources, such as being a housewife for years, making it hard for them to rejoin the workforce due to lack of experience or education. In addition, there are times when alimony is not granted, such as if you receive significant assets when the community property is divided.
The courts set spousal support or alimony based on a number of factors, such as prenuptial agreements, the length of a marriage, and other circumstances. For instance, a marriage that lasted 30 years may have the judge agree to 10 years of spousal support. Texas law has a formula for determining the amount of alimony that is typically paid out based on the average monthly gross income of the spouse having to pay it. It’s often a maximum of $5,000 or 20% of the average gross monthly income, whichever amount is the lowest. However, other factors can be involved, such as having to include other marriage debts.
What to Look For in a High Net Worth Divorce Attorney
When you’re considering a divorce, and there are a large number of marital assets involved, it’s essential to find the right divorce attorney. However, there are some factors you should keep in mind. First, you should look for a family law attorney with experience with complex divorces involving parties that either came into the marriage with valuable assets or built a wealth of assets together during the marriage. You’ll also want to find a firm that makes you feel comfortable in that you know they will listen to your wishes and advise you on the best way to accomplish what you want in the divorce. You should feel as though they and their team have your best interests at heart. Finally, it can also be a good idea to find a divorce attorney who’s just as comfortable with mediation as they are with being in the courtroom.
Going through the process of a divorce can be stressful and scary for any marriage, but when you add in a complex asset situation with a high net worth divorce, it can be even more worrisome. That’s where an experienced divorce lawyer willing to fight for you comes into play. They understand how this complicated web of assets can be in deciding to file for a divorce.
