Important Considerations in High Net Worth Divorces

High net-worth divorces are becoming increasingly common, and often include complex issues such as asset valuation, tax liability, and the impact of prenuptial agreements. A high net-worth divorce involves assets valued over $1 million and frequently requires expert legal counsel. There are important considerations involved in a high net-worth divorce including:

• Property classification
• Marital versus separate property
• Division of property
• Tax consequences
• Pre-marital agreements

In a divorce case, it is important to consider whether the property is classified as marital or separate property. Marital property includes everything acquired during the course of the marriage. This includes jointly owned property, property purchased with joint funds, and property received by gift, inheritance, or otherwise. On the other hand, the separate property does not include anything acquired prior to the marriage. For example, a person’s car or home is considered separate property even though he or she may have paid for it with joint funds.

A high net worth divorce generally involves a greater number and type of valuable and complex assets, such as real estate, automobiles, art collections, jewelry, precious metals, and financial investments. When dividing those assets, there are several considerations that a court needs to take into account. For example, when valuing a business, courts consider whether the business is operated as a sole proprietorship or partnership. They also look to determine how much each party contributed to the business during the marriage.

In addition, a court must decide what happens to separately inherited assets. If the inheritance is intended solely for the benefit of one spouse, it is treated like a separate asset. On the other hand, if the inheritance is commingled with marital funds or if the division is needed to maintain the other spouse’s lifestyle, the court may treat the inheritance as part of the marital estate.

The goal of a high-net-worth divorce is to make sure both parties receive a fair return on their respective contributions to the marriage. In order to do that, it is important to understand what assets are being divided and how they will be distributed.

Our attorneys work with numerous experts throughout the United States. Some of the most common types of experts include:

1. Accountants - An accounting expert helps determine whether there are any issues with one party's tax returns; assists in determining how much each party owes in taxes; identifies potential income sources, and determines the value of businesses.
2. Bankruptcy Attorneys - Bankruptcy lawyers help clients file bankruptcy petitions and represent them in court proceedings. They advise clients about filing for bankruptcy and assist them in negotiating settlements.
3. Business Valuation Experts - Business valuation professionals estimate the fair market value of businesses. They use different methods to arrive at their final numbers, including analyzing sales data, industry trends, and public records.
4. Criminal Law Specialists - Criminologists and criminal law specialists analyze evidence found at crime scenes to help determine what happened. They also examine witness testimony and interview suspects to find out why crimes occurred.
5. Financial Advisors - Financial advisors help individuals manage their money effectively. They recommend appropriate investments based on client needs, goals, and risk tolerance.
6. Forensic Accountants - Forensic accountants conduct investigations into accounts to uncover fraud, embezzlement, and mismanagement. They also review financial statements to identify discrepancies.

High net-worth marriages are often fraught with conflicts over money, property, and children. Many couples struggle with how to handle financial issues during separation and divorce. For example, one partner may want to keep certain assets separate from the marriage while the other wants to take everything away from his or her ex-spouse. Or perhaps there is a dispute about the valuation of a piece of real estate. A skilled high-net-worth divorce lawyer can help you sort out what belongs to whom, and ensure that you receive what you deserve.

If you’re thinking about getting divorced, it’s important to know what to do next. And while there are many things to consider, one of the most important decisions you’ll make is choosing a high-net-worth divorce attorney. You want someone who understands how high-asset divorces work and knows the ins and outs.

Our family law lawyer in Harris County, Galveston County, Fort Bend County, Montgomery County, Brazoria County, Houston, Sugar Land, Missouri City, and Stafford, Texas at Thornton Esquire Law Group, PLLC, can provide guidance and offer advice throughout the entire process. Contact us today at www.thorntonesquirelawgroup.com for a free consultation.