What is Considered a High Net Worth Divorce?
Divorce is expensive because it takes a lot of money and time. When people get divorced, they usually lose a big part of their life savings. A high net worth divorce requires lots of lawyers and other professionals. People who get divorced may lose everything they worked hard for. Divorce can be expensive, but you should try to save money by cutting back on unnecessary expenses. You may also have to pay taxes during your divorce. This is why it is important to hire an experienced lawyer. Divorce is expensive when there are lots of assets involved. Legal fees go up because of the complexity of the case. You may need to wait a long time before getting your money back. Divorce costs money. You should save as much as possible before filing your divorce papers. Tax implications may also arise if you file jointly or separately. Hire an experienced attorney in Harris County, Galveston County, Fort Bend County, Montgomery County, Brazoria County, Houston, Sugar Land, Missouri City, Stafford, Texas at Thornton Esquire Law Group, PLLC.
High net worth divorces require an attorney who specializes in such cases. The first step in a high net worth divorce is determining whether each asset is community property or separate property. Assets are divided into two categories: community and separate. Separate property is owned by the person who owns it prior to marriage. Community property is owned by both spouses equally. Spousal support is paid by one spouse to another when there is a need for continued financial assistance. This may include child care expenses, alimony, maintenance, or any other type of monetary award. Spousal support is also called alimony because it is given to an ex-spouse. There are three types of spousal support: temporary, rehabilitative, and permanent. Temporary spousal support is usually awarded until the former spouse finds employment. Rehabilitative spousal support is awarded if the former spouse is unable to work due to illness, injury, or disability. Permanent spousal support is granted if either spouse needs continuing financial assistance.
Spouses should divide assets and debts fairly. Anything that was owned by one of them before they got married belongs to him/her alone. However, if the other person starts a business before they get married, he/she might have contributed to it. Inherited money or gifts belong to the recipient alone unless the giver says otherwise. A business owner who starts his or her business before getting married should get half of the company's worth. An inheritance or gift received by the husband or wife during the marriage should be considered separate property.
Spouses should be financially independent before getting divorced. Alimony should be paid if there was economic dependence during the marriage. A spouse who commits adultery or domestic violence should pay alimony. High-earner child support can be as high as 25% of your net income. You can also be required to pay back taxes if you've been paying too many taxes during the marriage.
Divorce can be complicated when coming to dividing property between spouses. It is important to value assets and characterize them correctly as separate or community property, especially in a community property state such as Texas. A high-asset attorney helps the clients achieve an appropriate settlement in this regard. Contact us today at www.thorntonesquirelawgroup.com.
Allocating assets between divorcing spouses is complicated. In order to determine if a certain asset belongs to either party, you must know when and how the parties acquired title to the asset. This is called the inception of the title rule. The presumption is that all property is owned equally by both spouses. Property acquired prior to marriage or acquired during marriage by gift, devise, or descent is presumed to be community property. Compensation awards for personal injuries are separate property. Community property can be made up of a wide range of high-value assets, including the marital house, a family business, retirements accounts, savings accounts, stocks options, royalties, property, and vacation homes. These assets must be split during a separation. In long marriages, the division of assets can be complicated because separate and community assets are commingled, or hidden. For example, if you bought an investment property before your wedding, but you renovated it using some community property and other separate property. In this case, your spouse may argue that the community has an ownership interest in the property. Marriages should always include a pre-or postnuptial agreement. This protects both spouses' interests when there are substantial assets involved.
A high-asset divorce lawyer can help you draft an agreement that will make sure your assets are protected. There is a presumption that the assets are acquired during the marriage are community property. This presumption can be overcome by tracing the asset. Tracing requires experts who can follow the trail of documents related to the asset. A rental house or stock that increases in value is considered separate property. Income earned during marriage stays separate property. Allocating trusts and trust funds can be especially complex. A trust is a type of property ownership in which someone gives legal title to someone else and equitable title to another person or entity. Separate trusts created before marriage are called irrevocable spendthrifts because the income from them is not subject to division during a divorce. A spouse who receives a present possessory interest in a trust must pay taxes on the income he/she earns from the trust. Income earned by a spouse who does not receive a present possessory interest is typically taxed separately from other spouses' incomes. Spouses should always know about each other's assets before getting married. Trust funds are separate property, but any income earned by them is community property. A skilled lawyer can help you get a fair share of the assets in a divorce. You should consult a lawyer who specializes in high-asset divorces.
Divorce attorneys work hard to ensure that both parties get what they deserve after a marriage breakup. They help people divide their assets fairly. A divorce lawyer should be someone you trust to handle this sensitive matter.