In a high net worth divorce, the couple has complex financial and business issues, so the property division is more complicated. In those situations, financial advisers and accountants are useful in determining the division of the marital assets. There may be tax situations, child support situations, business and professional practice evaluations, and unique holdings that require the assistance of experts when determining the outcomes.
If you need legal representation for your divorce, contact an experienced family law attorney today. A Tarrant County high net worth divorce lawyer could protect your interests in any proceedings and fight for a favorable outcome.
Individual Versus Joint Net Worth
If a party owned large amounts of property before they were married, or they inherited property before or during their marriage, that increases the net worth of the individual. However, it does not necessarily increase the net worth of the marriage, because it is considered separate property. In contrast, if the parties own a business together and earned income together during the marriage, the community estate is high net worth rather than a single party.
If the couple has a prenuptial agreement, it may confirm the separate property and provide guidelines for what happens to the assets if a divorce occurs. The terms are identified in advance so both parties know what is expected.
In a high net worth divorce, special attention is given to the source of assets. It is important to be able to trace the history of where the assets originated to determine where they need to go post-divorce.
A marital residence could be either individual or joint property, depending on the circumstances. For example, a house could be considered separate property if one of the spouses owned the residence prior to the marriage. When one party owned the house before marriage, they may request to keep it as part of their separate property.
Depending on the circumstances of the case, the party that did not own the home can ask for reimbursement when a portion of their income went to pay for the house. When the marital residence was bought during the marriage, it is considered community property, and each party is entitled to half of the value.
International Holdings and Foreign Assets
When a couple’s assets involve international holdings and foreign assets, a few different factors come into play. One factor is the law in the location of the community property, such as bank accounts, retirement accounts, and real estate. There could be specific laws in those types of divorces.
However, the actual division of the property falls under Texas law, and the state determines the division of the assets. The manner in which the assets are divided and how they are transferred depends on the country in which the property is located.
Mediation, Arbitration, and Litigation
The mediator discusses the situation with both parties and recommends post-settlements. During mediation, it is helpful to have financial advisers available to discuss potential pitfalls for a proposed solution.
In arbitration, the arbitrator hears both sides of the case and possibly experts as well. Based on this testimony, they make a decision about how to divide the property. The same is true in a litigation situation. The judge or the jury hears both sides of the case, along with the appropriate experts, and makes a decision.
Role of a Tarrant County High Net Worth Divorce Attorney
In a high net worth divorce, it is important to have tax experts, property experts, and financial professionals involved to obtain a full understanding of the situation. When there is an unequal distribution and understanding of the assets, the lawyers work with the parties and experts and serve as team leaders.
For help dissolving your marriage, reach out to a Tarrant County high net worth divorce lawyer today. An experienced attorney could provide sound advice and strong advocacy during mediation, arbitration, or even trial, if necessary. Call today to schedule a consultation.