In Texas, divorce laws are the same, no matter how much money you have. However, with such a wide range of assets up for property division, high net worth divorces are definitely more complicated and require the expertise of specialized family law attorneys. Between complex real estate empires, spousal support, and child custody, success requires a divorce lawyer who is uniquely suited to the task of navigating these challenges.
Here’s what you need to know about hiring a high net worth divorce attorney in Texas and what the Warren & Migliaccio team can do to protect your interests during this important process.
Understanding High Net Worth Divorce
High net worth divorce is a complex and intricate process that involves the division of the marital estate, including significant assets such as real estate, investments, businesses, and intellectual property. These divorce cases often require specialized knowledge and expertise to ensure that the division of assets is fair and equitable. High net worth divorces can be emotionally and financially draining, making it essential to work with an experienced attorney at a reputable family law firm who understands the unique challenges and considerations involved.
High Net Worth Divorce Interactive Guide
How is a High Net Worth Divorce Different than Others?
On its face, a high net worth divorce isn’t too different than the regular kind—in fact, all the basic elements and applicable laws are the same. The only real difference? Income level.
High net worth divorces involve wealthy couples with extensive real and personal property. While there’s no official dollar amount, these households generally have at least one to five million dollars in liquid assets. Assets come in many forms, including cash, bank accounts, real properties, vehicles, boats, artwork, and jewelry. Not to mention a wide array of investments, retirement accounts, stocks, bonds, trusts, bitcoin, and debt.
Couples with this kind of wealth generally choose to spread their money across many different industries and investment options, including diverse portfolios. These interests often cross state lines and may even involve international laws. This means that the complex task of dividing marital property suddenly becomes much more involved for high net worth couples. Determining what is considered marital property can be particularly challenging in high-net-worth divorce cases, especially when assets are commingled or have been acquired through complex financial arrangements.
This infographic outlines critical considerations fo divorce lawyers in Texas, emphasizing the importance of managing complex assets, ensuring fair property division, and securing accurate valuations, while also addressing child support, tax implications, and asset protection.
High Asset Divorce Laws and Considerations
In high-asset divorces, the laws and considerations can be complex and nuanced. For example, the division of marital property is not always a 50-50 split, and the court may consider factors such as the length of the marriage, the income and assets of each spouse, and the standard of living during the marriage. Additionally, high asset divorces often involve the division of high-value assets, such as real estate, businesses, and investments, which can be subject to varying tax implications. It is essential to work with an experienced attorney who understands the laws and considerations involved in high-asset divorces and can provide sound legal advice.
Common Issues in High Net Worth Divorces
High net worth divorces often involve a range of complex issues, including the division of significant assets, the valuation of businesses and investments, and the determination of spousal support. Additionally, high-net-worth divorces may involve the discovery of hidden assets, which can be a challenging and time-consuming process. Forensic accountants and other experts may be necessary to uncover hidden assets and ensure that the division of assets is fair and equitable. Other common issues in high-net-worth divorces include the division of retirement accounts, the determination of separate property, and the negotiation of complex settlement agreements.
Dividing Marital Property in a High Net Worth Divorce
The good news is that high net worth divorces, which often involve substantial assets, are governed by the same family law rules as regular divorces. The bad news is it’s still complicated.
Texas is a community property state. This means that any assets, debt, interest, or obligation acquired during the marriage belongs to both partners equally—regardless of whose name is on the contract, paycheck, deed, or card. This property is called “marital property” and must be divided between spouses upon divorce.
Separate property, on the other hand, belongs to one spouse outright. Under Texas law, property is separate when it:
- Belonged to one spouse prior to marriage.
- Was received as a gift or inheritance.
- Was received as an award for personal injury.
- Involves interest or gains that can be directly traced back to any of the previous categories.
Separate property does not have to be divided and will leave with its respective owner after divorce.
The Importance of Having An Attorney
While the rules governing marital and separate property might seem straightforward, they can quickly become complicated—especially for a high-asset divorce. With so many important investments, properties, and financial interests at play, you’ll want a keen divorce attorney who is prepared to handle the complexities of a high net worth divorce.
Here’s a closer look at some areas where an experienced attorney might be valuable.
Complex Asset Valuation
Not all divorces require financial experts, but high net worth divorces almost certainly do, especially when substantial assets are involved. Depending on the circumstances, you may need a CPA or property appraiser. Other cases might require a forensic accountant or business valuation. A good divorce lawyer will work in tandem with these experts and rely on their judgment to help formulate legal strategies and secure an equitable distribution of marital assets. This can include valuing professional practices and business interests, which can be particularly complex.
Child Support and Alimony
In a high net worth divorce, the standard rules for calculating child support and alimony don’t apply. This is because children have a right to enjoy the same lifestyle as their parents and shouldn’t have to suffer economically for their parents’ divorce. Similarly, a spouse shouldn’t have to face poverty simply for leaving a bad relationship.
Hence, Texas judges are free to adjust baseline amounts whenever the standard rates don’t reflect a fair arrangement, and having a skilled attorney defend your interests can be a valuable asset during these uncertain negotiations.
Tax Considerations
Money equals taxes. With so many marital assets at play, high-net-worth couples have many tax implications to consider. A good lawyer will ensure you get the best deductions possible—consulting with financial experts along the way—and ensure you aren’t liable for unnecessary penalties after divorce.
Navigating a Prenuptial Agreement
A prenuptial agreement is a contract couples can make before marriage, which outlines the terms of any potential divorce. A well-written pre or postnuptial agreement can simplify the divorce process and keep costs minimal. However, if the agreement is flawed or one party decides to challenge the arrangement, this complicates things. A skilled high asset divorce lawyer helps ensure a contract’s terms are implemented fairly and as the parties intended.
Maximizing Asset Protection
Unfortunately, it’s not uncommon for spouses to try and hide assets from divorce court. This is especially true in high net worth divorces, where there are so many moving parts to keep track of. An experienced divorce lawyer knows how to uncover hidden assets and can help ensure you get your fair share of the property division
Choosing the Right High Net Worth Divorce Attorney
Choosing the right attorney is critical to ensuring a successful outcome in your divorce proceedings. Look for an attorney with experience in handling high net worth divorce cases, as well as expertise in areas such as business valuation, tax law, and forensic accounting. Additionally, consider an attorney who is a certified family law specialist and has a reputation for being knowledgeable, responsive, and aggressive in representing their clients’ interests. It is also essential to choose an attorney who is a good fit for your personal style and needs, as you will be working closely with them throughout the divorce process. This strong attorney-client relationship can make all the difference.
Next Steps in Your High Net Worth Divorce
If you are facing a high net worth divorce, it is essential to take the next steps to protect your interests and ensure a successful outcome. Start by gathering financial documents and information, including tax returns, bank statements, and investment accounts. This includes information on pensions and stock options. Next, consider hiring a forensic accountant or other expert to help identify and value complex assets. Finally, schedule a consultation with an experienced high-net-worth divorce attorney at a reputable family law firm to discuss your options and develop a strategy for your divorce. By taking these steps, you can ensure that you are well-prepared for the challenges and complexities of your high net worth divorce.
Frequently Asked Questions
What is the average net worth after divorce?
How is net worth split in divorce?
What is considered a high asset divorce?
How long does a high net worth divorce take to resolve?
What should I expect during the consultation?
Talk to a High Net Worth Divorce Attorney Today
High net worth divorces are complicated and require a legal team capable of handling its unique challenges. At Warren & Migliaccio, we understand these complex divorce needs and are passionate about helping our clients fight for what they deserve. For questions regarding high net worth cases we want to hear from you. Call our offices today at (888) 584-9614 for a free consultation, or contact us online and let one of our experienced divorce lawyers fight for your rights during this important process.
