Houston high net worth divorce attorney

How Do You Split Property During a High-Net-Worth Divorce?

Navigating a high-net-worth divorce in Houston can often feel overwhelming. These cases tend to be more intricate due to the complexity of the assets involved. Understanding how Texas law approaches the division of property is key to confidently addressing such challenges. 

Texas is a community property state, meaning assets are categorized as either community or separate property. 

Community Property

High-net-worth couples are likely to have accumulated substantial marital property during the time they were married. Marital property includes anything earned or acquired during marriage, such as vehicles, jewelry, artwork, stocks, houses, offshore accounts, bonds, and more. As long as the property was acquired during the marriage, by either individual, it is considered marital property. The challenge in a divorce is determining how to divide the mutually accumulated property in an equitable way to ensure each person receives a fair value.

Separate Property

While community property plays a central role in a divorce, items classified as separate property follow a different path. Assets acquired before marriage are considered separate and remain the sole property of the individual who brought them into the relationship. 

Other examples of separate property include:

• Gifts or inheritances given explicitly to one spouse during the marriage
• Compensation for personal injury settlements (excluding certain economic losses)

It’s rarely straightforward when distinguishing community and separate property. Disputes often arise regarding the characterization of assets like business holdings, real estate, or financial accounts that may include both separate and community interests. Furthermore, accurate documentation is critical to proving that certain assets qualify as separate property under Texas law.

How Does Equitable Distribution Impact Property Division?

Despite Texas requiring an equitable distribution of community property, it doesn’t mean you and your spouse will split everything 50/50.  Otherwise, the division of property would be fairly simple. Instead, the court takes into account various financial factors to determine an equitable distribution for both individuals.

All types of property will be considered by the court to ensure it is divided equitably, but you can also work with the other party to determine what you believe is an equitable division of assets. Some factors that should be considered when dividing property during a divorce include the following.

• How much individual property do you each own?
• How much in tax will you have to pay on the asset?
• How much earning potential do you each have?
• What effect will the divorce have on your future financial standing?

To ensure an equitable division of assets, all property must be disclosed by both individuals involved in the divorce. If one party believes the other is attempting to hide assets, a forensic accountant may become involved to identify any discrepancies during the disclosure process and verify that all property is properly disclosed. This is one way in which high-net-worth divorces become more complicated, since one party may attempt to hold on to more property than is legal.

How is Property Valued in a High-Net-Worth Divorce?

Another complication of high net worth divorces is the valuation of property, which must be done to ensure there is a full accounting of all mutually-owned assets. Sometimes, one individual involved in the divorce doesn’t understand the couple’s financial circumstances and could be at a disadvantage in the division of assets. In a case like this, a valuation expert and a forensic accountant may both be necessary to identify all property acquired during the marriage.

Our high-asset divorce lawyers have extensive experience that allows us to locate and value assets such as:

Property division in a divorce quickly becomes complicated, especially where one spouse owns substantially more assets than the other. Fortunately, our high-net-worth divorce attorneys in Houston have the in-depth knowledge to handle your case with the care and consideration it deserves.

Stock Options & Retirement Assets

When handling property division in a high-net-worth divorce, assets that are payable in the future may also be considered. For example, if retirement assets and stock options are neglected during the divorce proceedings, you could end up with an unfair settlement.

Stock options through a spouse’s employment are difficult to quantify. Therefore, it may be necessary to seek expert advice from forensic accountants and industry leaders to help protect your right to your share of these assets.

Retirement accounts can also pose a challenge. For example, it may be necessary to divide them by a Qualified Domestic Relations Order (QDRO) as a part of the divorce decree. Again, an experienced Houston high-asset divorce attorney can prove invaluable in protecting your interests in these situations.

High-asset divorce lawyers at Skillern Firm can take a detailed inventory of all assets, including those that are more difficult to quantify than others. We are committed to protecting your rights and are prepared to fight for your future, whether you are the higher-earning spouse or the lower-earning spouse.

Spousal Support Payments in High-Net-Worth Divorce

High-net-worth couples are accustomed to a certain standard of living that they want to maintain after their divorce is finalized. Determining how much support one partner has to pay to another is part of the equitable division of property. The court will at the earning potential of each individual and whether each person is currently employed and contributing income to the marriage. If both individuals have substantial incomes, the court will most likely decide not to award either party spousal support. However, if one partner is financially dependent on the other, alimony will come into play.

Temporary Spousal Support

In some high-net-worth cases, one party may be awarded temporary alimony (known as spousal support) if there is a substantial difference between the incomes of each individual and the household expenses are deemed to be high. Factors will be taken into account when determining temporary alimony, but the reason it’s temporary is usually that the lower-earning party is expected to be able to earn more money in the near future.

Long-Term Alimony

Even in high-net worth cases, long-term alimony may be considered at the discretion of the court and can have a time limit or be indefinite.

The court will take into account factors such as:

• Marital misconduct
• Earnings and earning capacities
• Age
• Physical, emotional, and mental conditions
• Earned and unearned income
• Length of the marriage
• Separate property
• Educational backgrounds
• Tax consequences
• Standard of living

Child Support in High-Net-Worth Divorce

Child support is often one of the most contentious aspects of a divorce, particularly when a high-net-worth family is involved. Divorces involve unique considerations, such as covering costs for private education or other significant expenses that exceed standard child support calculations.

At Skillern Firm, we are dedicated to assisting families in finding solutions that align with the children’s and their parents’ best interests. Whether through skilled negotiation and mediation or, when necessary, aggressive representation in court, our goal is to deliver an outcome that balances fairness with your family’s unique needs. For cases that proceed to trial, we approach the courtroom with careful preparation and determination to advocate for your rights.

Through every step of the process, we prioritize your family’s needs, working toward resolutions that provide clarity and stability for your child’s future.

Unique Challenges of Child Custody in High-Net-Worth Divorce

When it comes to a high-net-worth divorce, child custody issues can become particularly complex. Wealthy families often have unique considerations that can impact custody arrangements, including the lifestyle of both parents and the best interests of the children. At Skillern Firm, our experienced attorneys navigate these challenges with sensitivity and expertise, ensuring that your children's welfare remains the top priority.

Key factors to consider in high-net-worth custody cases include:

• Assessing the impact of financial stability on custody decisions
• Navigating complex schedules and parenting plans that accommodate busy lifestyles
• Understanding the implications of international travel and relocation
• Protecting children's inheritance and trust funds during custody negotiations

Our attorneys work closely with clients to develop tailored strategies that promote stability and security for children amid the complexities of divorce. Whether through mediation or litigation, we are committed to advocating for a custody arrangement that supports your children’s emotional and financial needs. Let our team guide you through this pivotal transition, ensuring that both you and your children are well-represented.

The Importance of Mediation in High-Net-Worth Divorce Cases

In high-net-worth divorce cases, tensions can run high, and emotions often cloud the decision-making process. Mediation offers a viable alternative to the traditional litigation route, enabling both parties to engage in constructive conversation and come to mutually agreeable solutions. By fostering open communication and collaboration, mediation can not only save you time and money but also preserve important relationships during this difficult transition.

Key advantages of choosing mediation for your high-asset divorce include:

• Confidentiality: Unlike court proceedings, mediation is private, keeping sensitive financial information and personal matters out of the public eye.
• Control: You and your spouse retain control over the outcome rather than leaving decisions in the hands of a judge.
• Cost-effective: Mediation is often more affordable than litigation, minimizing legal fees and reducing the financial stress of divorce.
• Faster Resolution: The mediation process typically moves at a quicker pace than court cases, allowing you to reach agreements and move forward sooner.
• Preservation of Relationships: Mediated agreements can lead to better long-term relationships, especially when children are involved, fostering a more cooperative co-parenting dynamic.

At Skillern Firm, our experienced divorce attorneys can guide you through the mediation process, helping you navigate complex financial concerns and ensure your interests are represented. Let us empower you to achieve a fair and amicable resolution.