Texas Divorce FAQ: How High Net Worth Cases Are Different
A high-net-worth divorce involves couples with significant assets and complex finances. These divorces are typically expensive and lengthy because each party must prove that he or she deserves a greater portion of the marital estate. In many states, a court will consider the value of the assets held jointly, including retirement accounts, real property, cars, boats, and even antiques.
The process of proving the value of a spouse’s assets is difficult. Sometimes it takes several months to determine how much money is actually being spent on the family home, for example. And while spouses may agree on certain issues, such as the division of the house, there are always disputes over the values of specific items. For instance, a husband might argue that his wife spends too much on clothes, whereas a wife might claim that her husband doesn’t spend enough on household expenses.Why Are High Net Worth Divorces More Complicated?
High net-worth divorces are more complicated than typical divorces. Property division is one area where there is usually significant disagreement among spouses. And the reason why is simple: most people don’t think about what happens to their retirement savings during a divorce.
This is large because high-net wealth couples often have non-traditionally assets that can be difficult to understand and divide. For example, many high-net-worth individuals hold investment accounts, such as 401(k) plans, IRAs, brokerage accounts, etc., that are separate from their personal finances and aren’t typically included in the marital estate.
And while it’s true that the IRS considers these types of investments to be owned jointly by both parties, there are still some important differences. For example, most states do not recognize joint ownership of retirement accounts unless you take certain steps to transfer ownership.
In addition, many states consider retirement account distributions to be income rather than a form of payment. As a result, state laws generally prohibit dividing those funds.Property Division in Texas
Texas law defines what constitutes "separate" and "community" property. Property that is acquired during the marriage is presumed to be community property; however, it can be shown that certain assets are separate property. If you're divorcing in Texas, there are several ways to divide your property. One option is to split everything equally. Another is to take into consideration each party's needs, wants, and abilities. You can do this by taking into account factors such as age, health, education level, employment history, and financial status.How Your Attorney Can Help
An experienced attorney can provide you with personalized legal guidance focused on your specific situation. They are able to do this because they have access to a wide variety of tools and resources, such as databases containing information about family court cases in your area, online research tools, and many others. This allows them to quickly find relevant information and apply it to your unique situation.
Your attorney can also work closely with you to develop a plan of action for your case. If you choose to file for divorce, your attorney will make sure that all applicable laws are followed. If you want to pursue a different option, such as collaborative law, they can guide you through the steps involved. In addition, your attorney can help you navigate the complex world of family law, helping you understand what documents you need to prepare and how to properly present your case.
Finally, your attorney can serve as a sounding board during the entire process. Should you run into problems along the way, they can offer advice and support. An experienced attorney knows what questions to ask, what documentation to gather, and what strategies to employ to ensure that your interests are protected.
An experienced divorce 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 help you with your divorce case. Contact us today at www.thorntonesquirelawgroup.com for a free consultation.Should You Hire a Financial Advisor to Help with Your Divorce?
A divorce financial advisor can provide many benefits to those going through a divorce, including helping you navigate the complex legal issues involved in dividing assets, determining how much money you will receive in alimony, child support, and/or equitable distribution, and ensuring that you are getting fair value for your marital estate.
However, there are some things to consider before deciding whether you want to hire a financial advisor to help you go through your divorce. If you already know what you want out of your divorce, you may decide that hiring a financial advisor is not necessary.
If you do choose to work with a financial advisor, make sure that you understand his or her background and qualifications. Some advisors will specialize in family law while others focus solely on investment advice.
You might also look into whether or not your state requires a fee disclosure statement. This document will outline fees and costs associated with the financial planning services performed, as well as the scope of services rendered.