Savvy handling of a high net worth divorce is necessary to protect your financial future
Divorce can be logistically complicated. Dividing assets between spouses can quickly become messy. Never is this truer than in high net worth divorces. When there are more assets and property on the line, people can try and do things like hide assets and do whatever possible to get more than their fair share. Especially when there is a substantial amount of assets on the line, proper valuation and division of the assets is critical. The results of how your finances are handled during divorce can have far reaching effects for your financial future.
Texas is a community property state meaning that all property gained during the course of the marriage is presumed to be community property. To determine whether a certain asset will be considered community property or separate property, it must be determined when the property was acquired. If you think that an asset should be considered separate property, you must be able to provide proof of the inception of the title to the property. You need to be able to show when you first acquired interest in it. It must be proven with clear and convincing evidence. Sometimes assets acquired during the marriage will be considered separate property, but this is the exception rather than the rule. If you received a compensation award for injuries you sustained, it will be considered separate property, except the compensation for the lost wages the injuries caused you to sustain during the marriage.
Community property is subject to equitable division during the divorce. This is why it is so critical that all assets are properly characterized as separate or community property. In addition to properly characterizing the assets, assets need to be properly valued. This may require specialty property appraisers and financial professionals. This is especially true if you or your spouse owned a business and the business is considered community property. You and your spouse can share the costs associated with hiring a business appraiser. Once the business has been properly valued, you and your spouse will have to decide how you want the business handled. You may wish to continue earning income from the business in which case you may want to pay your spouse his or her equity share in the business so you can keep it. You may both wish to sell the business and divide the proceeds once a suitable buyer has been found.
There is a lot on the line in a high net worth divorce. An experienced and knowledgeable divorce attorney can help:
- Trace the origin of assets to determine whether it should be considered community or separate property
- Find qualified appraisers to value assets
- Find qualified financial experts to value things like stocks and securities as well as aid in the determination of whether these assets should be considered community or separate property
If you are facing divorce and are concerned about protecting your assets and property, we can help. Fort Worth divorce attorney Kyle Whitaker provides trusted legal counsel and skilled guidance through even the most tumultuous divorce. He works tirelessly to ensure your best interests are protected in your high net worth divorce. Contact The Law Office of Kyle Whitaker today by calling (817) 332-7703 or contact us online.