Divorce is a challenging process requiring two individuals who may be struggling to communicate to come to terms with how their marriage will end. Dissolving a high-net-worth marriage in Texas can be arduous and challenging to navigate.
Divorce proceedings in McKinney, TX must involve over $1 million in assets to be considered a high-net-worth divorce. These complicated dissolutions require a knowledgeable Texas divorce attorney to navigate the challenges of property division successfully. Consider these factors if divorce is possible in your marriage and you and your partner own high-net-worth assets.
Navigating a High Net Worth Divorce
It is likely that in addition to an experienced attorney, you will need to enlist the help of multiple professionals to assist with the division of assets. This guidance guarantees a more equitable division of property. In Texas, property division does not have to be equal but equitable.
Experts such as financial planners, certified public accountants, and business valuation experts may need to assist in the property division, ensuring the most acceptable value is assigned to properties and the loss of funds due to fees and taxes is avoided. Private investigators may also need to be retained if a partner suspects their spouse is hiding funds to prevent an equitable division in a divorce.
Hiding assets in a divorce is against the law in Texas. When this happens, a judge can award all of the hidden assets to the other spouse.
Community and Separate Property
Any property acquired during the marriage is community property to be divided equitably. Property in your possession before the marriage is separate property. Separate property can include inheritances, premarital homes, gifts, and earnings. In marriages, however, commingling assets often muddies the waters of division in divorce.
For example, a spouse may have lived in a home in a highly visited area before the marriage. After marrying, that spouse decides to move into the partner’s house, keeping that home in the highly sought-after area and turning it into a vacation rental. The other spouse may have taken a significant amount of their own funds to invest in remodeling to make the home more appealing on the rental market.
When the division of assets is assessed, the amount of money the one spouse invested into the other spouse’s rental home will be considered. This same scenario may play out for a business owner whose spouse comes to work for the company after marriage. Working with a high-net-worth divorce attorney in McKinney can ensure the equitable division of all assets.
Prenuptial Agreements
Prenuptial agreements are one way to more easily navigate a divorce when spouses come into a marriage with considerable assets. Prenuptial agreements not only help to protect your assets, but they also help to protect your spouse from debt.
Consider that you bought your dream boat before getting married, which cost significant revenue. A prenuptial agreement was created, and the boat was listed as your property. If the marriage ends before the boat has been paid off, your spouse is also protected from incurring a portion of the debt still owed on the boat.
Couples often view prenuptial agreements as a lack of trust in the other partner, but this is not the case. Divorce is a common practice, and planning for the worst-case scenario is an investment in your future, whether you spend it with your partner or decide to forge a different path.
Postnuptial Agreements
Postnuptial agreements are also a great way to protect your partner from debt, but they can also be used to designate assets to each partner in the event of a divorce. Postnuptial agreements can be highly beneficial for a spouse who enters a new business after marriage, protecting their spouse from business debt and ensuring the success and continuation of the business in the event of a divorce.
When a business is community property and must be divided in a divorce, the valuation of the company must include all assets, not just those that are tangible. Future earning potential and comparable market data must be considered.
Alimony and Spousal Maintenance
Texas takes a unique approach to alimony. Spousal maintenance may be awarded in certain instances, but it is not guaranteed. The courts base the spousal maintenance award on the amount of property the requesting spouse has at the time and the property’s ability to cover basic needs. Additional circumstances also apply in the determination of spousal maintenance.
Additionally, Texas limits the maximum amount of maintenance that can be awarded along with the duration. Working with a McKinney, TX family law attorney is crucial to ensure equitable distribution of assets for the entire family’s needs. Tax laws concerning spousal maintenance are also more complicated to navigate.
Custody and Child Support
Any divorce demands a redirection of time and energy, often requiring a parent to reenter the workforce, shifting time away from home and familial duties. The educational opportunities and extracurricular involvement of children in high-net-worth families can often compel parents to become more aware of the costs associated with these endeavors and how expenses will be covered.
Considering these changes and finding the most suitable outcome in child custody and child support determinations can be facilitated by a Texas family law attorney in McKinney. Each parent should want the best for their child, regardless of the dissolution of a marriage. Maintaining a respectful position of your spouse is necessary for a child’s well-being.
McKinney, TX High Net Worth Divorce Attorney
High-net-worth divorces require an attorney with experience in a full range of family law matters that will work to protect your interests and ensure an equitable outcome. Petitt Family Law in McKinney, TX never shies away from the unique challenges that accompany a high-net-worth divorce. We understand that the changes your family is experiencing are overwhelming and require dedicated attention from a compassionate but assertive McKinney divorce attorney committed to protecting your best interests and ensuring a secure future after a divorce is final.
Let’s begin today by scheduling your appointment in McKinney, TX to discuss how Petitt Family Law can help you with a high-net-worth divorce.