High-Asset Divorce in Texas: Unique Complications

While most Texas divorces are complicated, and questions related to finances tend to top the list of complications, divorces involving significant assets take things to the next level. Other than issues related to child custody, finances are the single most emotionally fraught – and often contentious – component of any divorce. When you get into the territory of high assets, finances naturally become more complicated. The world of high finance often involves businesses and multiple real estate holdings, which are typically far less transparent when assigning value for the dissolution of a marriage. If you are facing a high-asset divorce, you need a skilled divorce attorney with experience handling these complex cases.

The Complications that Come with High Finances

As marital estates become larger, they also tend to become more opaque and difficult to track. The intricacies of business structures and taxation dictate that the more wealth you amass, the more complicated your finances become. This makes obtaining an accurate reading of your marital assets much more laborious. If you and your divorcing spouse have considerable assets, it is very likely that you will need the highly specialized services of forensic accounting to calculate a reliably accurate valuation for your holdings.

The Division of Property in a Texas Divorce

Texas is a community property state, which generally means that the judge will assess the circumstances of your divorce and divide your property – assets, and debts – in a way that he or she deems “just and right.” Just and right can mean different things to different people, and you and your soon-to-be-ex are unlikely to see eye-to-eye on this matter. Two factors often play a determinative role in situations in which assets are divided lopsidedly:

The spouse with the most responsibility for raising the children may be awarded a larger percentage of the marital property.
A spouse with significantly less earning potential may be compensated with a larger percentage of the marital assets.

The fact that the State of Texas is not looking to divide your marital wealth evenly down the middle makes it much more important to enlist a knowledgeable Houston divorce lawyer to protect your finances throughout the divorce process.

Your Finances

In marriages with high assets, as with many marriages, it is not uncommon for one spouse to play a far more integral role in the family’s finances. This can make determining the value of your estate even more nuanced. If you are not the party with a more active role in your family’s finances, you can be at a disadvantage. Therefore, it is important to bring in an experienced divorce lawyer as quickly as possible.

The person more intimately involved in your marital finances has some decided advantages when presenting your assets in a particular light. In other words, he or she likely has the insight and finesse to paint a less-than-accurate financial picture. Your financial future very likely depends upon your divorce settlement, and it is far too important not to protect your rights and to aggressively advocate for the financial settlement to which you are entitled.

Underhanded Tactics

The stress and anxiety associated with divorce are difficult to overstate, and divorcing spouses are often not at their very best when under this kind of pressure. Some divorcing spouses are not above hiding assets, devaluing assets, quietly moving or selling assets – and worse – to skew the finances in their favor in the divorce. If your spouse is more closely involved in your family’s finances than you are, he or she is more likely to have the financial upper hand. It is critical that you bring in a dedicated divorce lawyer to help determine your marital assets and protect your “just and right” share of those assets throughout the divorce process.

Do not hesitate to share this information with your attorney if you have reason to believe or suspect that your spouse is engaging in underhanded financial tactics. The sooner your dedicated legal advisor engages the specialized services of an investigative forensic accountant, the more secure your finances will be.

Matters of Privacy

If you are going through a high-asset divorce, the dissolution of your marriage may be the subject of a lot of attention. After all, the world of high finance is interesting because the reverberations often affect far more people than just the divorcing couple. In other words, high-asset divorces are often high-profile divorces. As such, your divorce and financials may be subject to more public scrutiny than you would like. A dedicated Houston divorce lawyer will endeavor to protect your privacy and to help ensure that your private financial records remain sealed and private.

Your High-Asset Divorce

Every divorce is difficult, fraught with emotion, and utterly unique. When a divorce involves the division of a sizable estate, it makes the entire process that much more delicate. Whether you are simply considering divorce or your divorce is inevitable, it is never too soon to gather your financial information and documents to create as thorough a financial snapshot as possible. Synthesize the financial information you can access and carefully examine it with your legal counsel. A high-asset divorce has an additional layer of complexity that necessitates exacting scrutiny.

High Asset Divorce FAQs

High asset divorces involve unique challenges and consequences, especially in financial matters. Here are some answers to some common questions:

Who loses more financially in a divorce?

The financial impact of a divorce varies widely depending on several factors including the prenuptial agreements, state laws, the length of the marriage, and each party’s financial status before and during the marriage. Generally, the spouse with higher earnings or more assets at stake may experience a more significant financial loss, especially if they need to pay alimony or child support.

What is considered a high asset?

A high asset divorce typically involves significant and diverse assets which may include, but are not limited to, high net-worth investments, multiple real estate properties, expensive personal property (like art and jewelry), business ownerships, and substantial retirement accounts. The threshold for “high asset” can vary, but it often starts from assets in the millions of dollars.

How much money should I save before divorce?

It’s advisable to have enough savings to cover at least 3-6 months of living expenses, legal fees, and any unforeseen expenses that may arise during the divorce proceedings. The exact amount can depend on your lifestyle, obligations, and the anticipated complexity of your divorce.

How to avoid financial ruin in divorce?

To avoid financial ruin in a divorce, it is crucial to:

Engage a reputable financial advisor and divorce attorney.
Establish a clear understanding of your financial rights and obligations.
Create a comprehensive inventory of all assets and liabilities.
Avoid making large financial decisions impulsively.
Plan for future expenses and adjust your lifestyle accordingly.

What do men lose during a divorce?

Men can lose various assets and resources during a divorce, such as part of their estate, a portion of their pension, and other financial assets accumulated during the marriage. They may also face obligations such as alimony and child support, which can affect their financial stability.

Who suffers most after divorce?

The impact of divorce varies individually. Factors such as emotional attachment to the marriage, involvement with children, financial dependency, and overall resilience play significant roles. Both men and women can suffer significantly in different ways—financially, emotionally, and socially.

Can I empty my bank account before divorce?

Emptying a bank account before a divorce can be legally risky. It can be seen as an act of bad faith and financial misconduct in the divorce proceedings. Such actions can lead to legal penalties, unfavorable settlements, and loss of credibility in court.

Why is moving out the biggest mistake in a divorce?

Moving out without a clear agreement or understanding, especially when children are involved, can affect your custody rights and may be perceived as abandonment. It can also financially burden the spouse who moves out, as they might continue to bear expenses for the marital home along with additional living expenses.

How do you avoid getting screwed in a divorce?

To protect your interests:

Hire a competent divorce lawyer who understands high asset divorces.
Fully disclose and document all assets and debts.
Avoid making any significant financial or parenting decisions without legal advice.
Stay actively involved in all aspects of the divorce process.
Consider mediation to resolve disputes amicably and cost-effectively.

If Your Divorce Involves High Assets, Consult with a Dedicated Houston Divorce Attorney Today

The fact is that divorce is hard, and a high-asset divorce is that much harder. If you’re facing a high-asset divorce, you must obtain an experienced divorce lawyer with whom you feel comfortable working. At The Rudisel Law Firm, P.C. our experienced legal team understands the intricacies of high finance, and we’re dedicated to fighting for your financial rights. We’re here to help, so please contact us by filling out an online evaluation or calling us at 713-781-7775 today.

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