5 Issues That May Need to Be Addressed in a High Net Worth Divorce

 Posted on June 09, 2023 in Divorce

Regardless of a family's circumstances, divorce can be a challenging and emotionally taxing experience for all parties involved. A high net worth divorce, however, brings an additional layer of complexity. Multiple financial issues may need to be addressed, and there are a variety of other concerns that are unique to couples who earn high levels of income or own complex assets. Many of these issues may involve strong emotions, and they can trigger contentious legal battles as spouses seek to protect their financial interests and address other divorce-related concerns. With the help of an experienced attorney, spouses who earn high incomes or own valuable assets can make sure they take the correct approach during the divorce process.

Unique Factors in High Asset Divorce Cases

During a high net worth divorce, couples may need to address issues such as:

• Division of complex and valuable assets - Spouses will need to understand the value of different assets as they proceed with the process of dividing marital property. Financial accounts, real estate properties, investments, and retirement benefits may all have significant value. Other valuable items, such as jewelry, artwork, antiques, collectibles, vehicles, or other forms of personal property may need to be appraised, and both parties will need to understand the extent of what they own as they determine how to divide their assets fairly.

• Business ownership - If one or both parties own a business, it is critical to determine how issues related to the business will be handled during the divorce process. In these situations, a couple may need to work with professionals such as appraisers or forensic accountants who can perform a business valuation and assess the current and future financial worth of a company. Once the business's value is established, spouses can negotiate agreements addressing how ownership of business assets will be handled or whether a business may be sold during the divorce process.

• Spousal support - In a high net worth divorce, one spouse may earn the majority of the family's income, and the other spouse may rely on that income to meet their ongoing needs and maintain their accustomed lifestyle. To ensure that both parties can continue living at the same standard they enjoyed while they were married, spousal maintenance or alimony may be awarded. The court may consider the income and earning potential of both spouses when making decisions about alimony, as well as other factors that may affect each party.

• Tax implications - Divorce can significantly impact an individual's tax standing. Spouses will need to understand how their filing status may change or what types of deductions and credits they will be able to claim. They will also need to be aware of how taxes may apply to assets that are sold or transferred during the divorce process. It may be necessary to work with accountants or other financial experts to address tax issues that could affect a person during and after their divorce.

• Estate planning - The end of a marriage can have a significant impact on the decisions about a person's estate and how their assets will be distributed to their beneficiaries after their death. Wills, trusts, powers of attorney, and other estate planning documents may need to be updated to reflect changes in a person's circumstances and ensure that their assets will be protected.

Contact Our Hurst High Net Worth Divorce Lawyer

The divorce process can be complicated for couples who have a high net worth, and a wide variety of different types of legal and financial concerns will need to be addressed. At Daniel R. Bacalis, P.C., our Tarrant County high asset divorce attorney can make sure all aspects of your divorce are considered properly, and we can work with financial experts or other professionals to address the unique issues that may be involved in your case. We will work to ensure that you will be able to move on to a financially secure future after your divorce has been finalized. Contact us at 817-498-4105 to set up a free consultation.

Sources:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.8.htm