High Net Worth Divorces

High-net-worth divorces can be complex and often involve unique financial issues, such as tax implications, transfer restrictions, vesting concerns, valuation problems, and separate property tracing. Our Tarrant County, Texas-based high-net-worth divorce attorneys have the expertise to guide you through the process.

While there is no fundamental legal difference between a high-net-worth divorce and any other divorce, the complexity of the financial issues involved can make it a much longer and more contentious process.

It is understandable that you want to protect your personal wealth during your divorce. Whether you have worked hard to build up a business or a professional career, or if your wealth consists of family inheritances, you should be able to walk away from the divorce with everything that is rightfully yours.

Under Texas family law, community property is divided equally between the spouses in a divorce. This means that you may have a right to claim a share of your spouse’s assets.

Our goal is to ensure that your divorce leaves you with as much as possible in terms of personal assets so that you can move on in your life. Here are some additional things to keep in mind about high-net-worth divorces in Texas:

The valuation of assets can be complex and expensive. This is especially true for businesses, closely held corporate stock, and other complex assets. It is important to work with a qualified appraiser to ensure that your assets are valued accurately.
Taxes can be a major issue in high-net-worth divorces. It is important to consult with a tax advisor to understand the tax implications of your divorce and to develop a tax-efficient strategy.
Child support and spousal maintenance can be significant issues in high-net-worth divorces. The court will consider a variety of factors when determining child support and alimony, including the income of both spouses, the needs of the children, and the standard of living during the marriage.

If you are facing a high-net-worth divorce in Texas, it is important to speak with an experienced family law attorney at The Law Offices of Richard C. McConathy. An attorney can help you to understand your rights and options and to protect your interests during the divorce process.

What Constitutes a High Net Worth Divorce

High-net-worth divorces are complex and often involve millions of dollars in assets, such as business shares, homes, and overseas assets. Here is a guideline to help you understand what to expect:

High-net-worth divorces can take a long time to complete. This is because there are often many complex financial issues to resolve.
Legal fees for high-net-worth divorces are typically higher than for other divorces. This is because of the complexity of the issues involved and the amount of time required to complete the divorce.
You may need to adjust your lifestyle and spending during the divorce process. This is because the court may consider your spending habits when making decisions about child support, alimony, and property division.
There may be tax implications associated with your divorce. It is important to consult with a tax advisor to understand the tax implications of your divorce and to develop a tax-efficient strategy.

It is important to note that there is no formal definition of a high-net-worth divorce. However, it is generally considered to be a divorce involving several million dollars in assets.

If you are facing a high-net-worth divorce, it is important to speak with an experienced family law attorney. An attorney can help you to understand your rights and options and to protect your interests during the divorce process.

Here are some additional tips for high-net-worth divorce:

Be transparent with your attorney. Your attorney needs to have a complete understanding of your financial situation in order to best represent you.
Be prepared to negotiate. Most high-net-worth divorces are resolved through settlement negotiations. Be prepared to compromise in order to reach an agreement that is fair and reasonable for both parties.
Be patient. High-net-worth divorces can take a long time to complete. Be patient and trust that your attorney is working hard to protect your interests.

Community and Separate Property in High Net Worth Divorces

The first step in dividing assets and debts in a divorce is to determine what is community property and what is separate property. Community property is all property acquired during the marriage by either spouse, except for gifts and inheritances.

Separate property is all property owned by either spouse before the marriage, plus gifts and inheritances received during the marriage. In Texas, community property is divided equally between the spouses in a divorce.

Examples of community property include:

Income from employment
Homes and other real estate purchased during the marriage
Bank accounts and investments opened during the marriage
Furniture and other household goods purchased during the marriage

Examples of separate property include:

Property owned before the marriage
Gifts and inheritances received during the marriage
Personal injury awards

It is important to note that there are some exceptions to these general rules. For example, if one spouse owned a business before the marriage, the other spouse may have a claim to a share of the business’s value if they contributed to its growth during the marriage.

If you are facing a divorce in Texas, it is important to speak with an experienced family law attorney. An attorney can help you to understand your rights and options and to protect your interests during the divorce process.

Here are some additional things to keep in mind about community property division in Texas:

Community property debts are also divided equally between the spouses in a divorce.
If the spouses cannot agree on how to divide their community property, the court will divide it for them.
The court will consider a variety of factors when dividing community property, including the length of the marriage, the financial needs of each spouse, and the contributions each spouse made to the marital estate.

If you have any questions about community property division in Texas, please consult with an experienced family law attorney.

How Much Marital Estates Are Worth

Once we have classified the property to determine which assets will be subject to division, we will need to perform an exhaustive valuation of the estate. The Law Offices of Richard C. McConathy retains the services of experts such as certified public accountants, financial planners, counselors, and investigators to fully address the concerns in your case.

We also skillfully use the legal process of discovery to compel the other spouse to reveal all assets, including:

401(k) and other retirement accounts
Investments
Liquid assets
Vehicles, homes, and vacation properties
Inheritances
Business ownership stakes

Based on what we find during the discovery process, we can work toward a negotiated settlement or a courtroom verdict that provides you with your share of the marital estate. We are relentless in our pursuit of information that will benefit your case, and you can rely on our experience in handling high-asset divorce cases to help you achieve the best possible result.

Here are some additional things to keep in mind about asset valuation in high-net-worth divorces:

It is important to have all assets valued by a qualified appraiser.
Some assets, such as businesses and closely held corporate stock, can be difficult to value.
The value of assets can fluctuate over time. It is important to keep up-to-date appraisals of all assets.

How Alimony and Child Support Are Calculated in High Net Worth Divorce Cases

The financial circumstances of each spouse at the end of the divorce will also influence the decision about whether or not to award spousal support. In many high-net-worth divorces, one of the spouses has been financially dependent on the other spouse during the marriage and will now need spousal support to transition back to being financially independent. Spousal support may also be awarded in some cases where one of the spouses is to blame for the failure of the marriage, such as through adultery or domestic violence.

Another consideration that often comes up in high-net-worth divorces is high-earner child support. If your monthly net income is above $7,500, you may be subject to a different set of calculations to determine how much child support you will be required to pay to the other parent.

Here are some additional things to keep in mind about spousal support and child support in high-net-worth divorces:

Spousal support and child support are determined on a case-by-case basis. The court will consider a variety of factors when making a decision, including the income of both spouses, the needs of the children, and the standard of living during the marriage.
Spousal support can be temporary or permanent. Temporary spousal support is typically awarded to help one spouse transition back to being financially independent. Permanent spousal support may be awarded in cases where one spouse is unable to support themselves financially due to a disability or because they are the primary caregiver for the children.
Child support is typically paid until the children reach a certain age, such as 18 or 21. However, in some cases, child support may be extended until the children finish college or become financially independent.

Premarital and Postmarital Agreements

If either spouse has significant assets before marriage, it may be wise to draft a pre- or postnuptial agreement to protect those assets in case of divorce. A well-drafted agreement can minimize conflict during a divorce by clarifying which assets are separate property and which are community property. A high-asset divorce attorney can also help you draft an agreement to convert certain community property into separate property.

If there is no pre- or postnuptial agreement, you may be able to overcome the presumption that an asset is community property through tracing. This involves showing that the asset was purchased with separate property funds or that it is the result of separate property investments. To trace an asset, you may need to hire an expert to review your financial records.

What about property that increases in value during the marriage, such as a rental home or stock? Increases in the value of separate property remain separate property. However, any income generated from separate property is community property. For example, if the spouses rent out a home that one spouse owned before the marriage, the rent money is community property.

Here are some additional things to keep in mind about pre-nuptial and postnuptial agreements:

Pre- and postnuptial agreements must be in writing and signed by both spouses.
Pre- and postnuptial agreements must be fair and reasonable.
Pre- and postnuptial agreements can be challenged in court, but they are generally upheld if they are valid.

If you are considering a pre- or postnuptial agreement, it is important to speak with an experienced family law attorney. An attorney can help you to understand your rights and options, and to draft an agreement that protects your interests.

Trust Fund Issues

Characterizing a trust in a divorce can be complex. Trusts are legal arrangements in which a settlor (person who creates the trust) transfers ownership of assets to a trustee, who holds the assets for the benefit of the beneficiaries.

In Texas, separate trusts created before marriage that are irrevocable spendthrift trusts can be a way to protect separate property. Income from these trusts is not subject to division during a divorce, as long as the beneficiary spouse does not have a present possessory right to any assets in the trust.

However, if a spouse is given a present possessory right to any part of the trust, the income from the trust can be divided as community property. This is because community property includes all income earned during the marriage, regardless of which spouse earned it.

Similarly, if one spouse’s parents establish a trust fund for that spouse as a form of inheritance, the principal of the trust fund is separate property. However, any income earned by the trust fund and distributed during the marriage is considered community property.

It is important for a lower-earning spouse to be aware of the possibility of a wealthy or higher-earning spouse siphoning income earned during the marriage into separate trusts in order to deplete and defraud the community estate.

Here are some additional things to keep in mind about trusts in Texas divorces:

If a spouse claims that a trust is separate property, the other spouse has the right to challenge that claim.
The court will consider a variety of factors when determining whether a trust is separate or community property, including the date the trust was created, the source of the funds used to create the trust, and the intent of the settlor.
If a trust is found to be community property, the court may order the trustee to make distributions to both spouses.

If you are facing a divorce and have questions about trusts, it is important to speak with an experienced family law attorney. An attorney can help you to understand your rights and options and to protect your interests during the divorce process.

High Net Worth Divorce Attorney in Tarrant County, TX

Do you think that your impending divorce might be deemed a high-net-worth divorce in Fort Worth, Arlington, Grapevine, Keller, Southlake, and other cities in Tarrant County, Texas? It will be important for you to quickly speak with The Law Offices of Richard C. McConathy because our firm has experience helping spouses on both sides of the aisle in these cases.

You can call (817) 422-5350 or contact us online to set up a free consultation that will allow us to review your entire situation with you. Our firm also helps people dealing with assorted domestic violence or family violence issues, such as continuous violence against the family.