Going through a divorce is rarely a simple process and can be a contentious and taxing affair. This is especially true in divorces involving those with a high net worth, such as those involving business owners. High net worth divorce cases involve significantly larger sums of money and more assets than a typical divorce case. This can make the process even more complicated, as there are more possessions to divide and a more significant impact on both partners as a result. If you need legal guidance for a high net worth divorce in Texas, Austin divorce attorney Abraham Kant has years of legal experience to contribute to your case. Contact Mr. Kant today to schedule your initial consultation.
Texas is a community property state: the court is allowed to divide assets in whatever way the judge believes is fair. In some instances, this may not lead to an even 50/50 split.
Property division in divorce cases often comes down to when the spouse owned the item in question. The difficulty arises when the court must determine how something was earned or obtained. Many judges will look at what each spouse owned before the marriage and what was owned when they split. This can be a good starting point.
Inheritances can also make the separation more complex. In high net worth divorces, it is common that one of the spouses has an inheritance of some kind. If whichever spouse was given the inheritance uses it to pay for a joint item such as a home renovation or a mortgage, it becomes even more complicated to determine how these assets are to be divided fairly.
Most divorces involve a single home. However, with spouses in high asset cases, there may be additional residences, such as second homes or vacation properties, along with other assets such as boats or multiple cars. This can be further complicated if each spouse uses these properties independently.
Family businesses can also be difficult. One spouse may have spent more time working there, but because of the earnings and logistics of the split, the other could end up having more ownership. If there is a family business involved in the divorce, it is important to also note the status of that business before the relationship and after the separation. This helps create a clearer picture of how much of the business success can be attributed to both spouses. These situations can sometimes be resolved by one spouse buying the other out of the business.
Some divorces cost a substantial amount of money during the proceedings, and after the split is finalized, it has an even larger impact. Income may be reduced, sometimes drastically, and that can be a difficult adjustment to make.
It is also prudent after going through the stress of a divorce to have a financial advisor who can help you figure out the most effective way to deal with your new financial situation. If you are entering a high net worth divorce in Texas, having a knowledgeable divorce attorney on your side to help you navigate the complexities is the single most important action you can take.