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How Can I Protect Family Wealth During My Divorce?
During a high net worth divorce, spouses will not only want to make sure their own financial interests will be protected, but they may need to take steps to ensure that other family members are not negatively affected by the end of their marriage. Those who come from wealthy families will want to make sure their family’s assets will not be lost during divorce proceedings. Spouses who have acquired significant assets during their marriage may want to ensure that certain assets will be preserved and passed on to their children or other family members. Business owners, executives, and those with large incomes may need to determine how to divide their marital assets in a way that will allow family businesses to remain in operation while making sure they and their families will have the resources they need in the years to come.
Will the COVID-19 Pandemic Affect Child Custody Issues in My Divorce?
The COVID-19 crisis has affected everyone in the United States, and while vaccines are currently being made available, the pandemic will likely continue to affect people and families throughout 2021 and beyond. Because of this, parents will want to make sure they are following the proper measures to protect themselves, their children, and other loved ones. If you are a parent who is currently going through a divorce, you may have already had to address a variety of complex child custody issues, and COVID-19 may have complicated these matters even further. Fortunately, by working with an experienced attorney, you can take steps to protect your parental rights and ensure that your children can remain safe and healthy.
Child Custody for Those Affected by COVID-19
Many families are able to avoid COVID-19 infections by following social distancing guidelines, staying home whenever possible, wearing masks when in public, and making sure all family members wash their hands regularly. However, there are some cases where family members may need to take additional precautions due to increased risks of infection. For example, if a parent works in the healthcare field and is regularly exposed to those who have been infected, they may need to take additional measures to ensure that they do not inadvertently spread the virus to their children.
How Are Pension Benefits Handled During a High Net Worth Divorce?
A high asset divorce will involve a variety of complicated financial issues, and complex property litigation may be needed to determine how assets and debts will be divided between the parties. While spouses will often focus on issues related to physical property, real estate, investments, valuables, and financial accounts, they will also want to address their retirement benefits. In addition to dividing the balances of retirement accounts such as 401(k)s or IRAs, spouses will also want to understand their rights regarding pension benefits earned by either spouse during their marriage.
Dividing Pension Benefits Between Divorcing Spouses
Pensions are different from other types of retirement assets since their actual value will usually not be known at the time of a couple’s divorce. Pensions are known as “defined benefit plans,” and the benefits that a person will receive are based on factors such as the number of years a person worked in a position that earned pension benefits and the salary they received at the time of retirement. The amount that a person paid into a pension fund will usually not be directly related to the amount of benefits they receive, so the current balance of a pension account will not be relevant during a couple’s divorce.
How Can I Make Sure My Prenuptial Agreement Will Be Enforceable?
When getting married, couples will need to be aware of a variety of issues that may affect them both immediately and in the future. While planning for the possibility of divorce will likely not be their top priority, it can be a good idea to consider this issue, especially if one or both spouses are entering the marriage with significant assets. A prenuptial agreement can provide spouses with protection, ensuring that they will be able to maintain ownership of certain assets if their marriage ends while also addressing other issues that may play a role in a potential divorce. However, couples will want to be sure their prenup will be legally valid and that its terms can be enforced if they do decide to get a divorce.
When Can a Prenup Be Invalidated
A prenuptial agreement must be signed by both parties before getting married, and it will take effect after the couple becomes legally married. A prenup will usually be enforceable if it is in writing and signed by both parties. However, under Texas law, a prenuptial agreement may be unenforceable in the following situations:
How Can a Forensic Accountant Assist with a High Net Worth Divorce?
The process of getting a divorce is rarely easy or simple. While all divorces have their own unique complexities, high net worth divorce cases can be especially complicated, since couples will need to address a wide variety of financial issues, including considering multiple sources of income, investments and other complex assets, business ownership, taxes, and debts. Whether a couple is involved in complex property litigation or needs assistance unraveling the details of their finances, a forensic accountant can be an invaluable resource.
Forensic Accounting During the Divorce Process
Forensic accountants can review financial records, perform appraisals, and analyze assets, debts, income, and other issues that affect a couple’s divorce. By providing a full understanding of a couple’s financial situation, these experts can help ensure that marital assets and debts are divided fairly in a divorce settlement, that financial support is calculated correctly, and that any concerns about undisclosed assets or misreported income are addressed properly.
How Is Child Support Calculated in a Texas High Net Worth Divorce?
Divorcing spouses will need to address many different legal and financial concerns when ending their marriage, and in many cases, a divorce case will become more complex when a couple has children. In addition to determining how they will share child custody, parents should also understand their child support obligations. In cases where a couple has a high net worth, parents may need to address additional financial issues when determining the amount of child support that will be paid.
Texas Child Support Guidelines
The state of Texas uses a straightforward “percentage of income” method to calculate a parent’s child support obligations. The parent who has the majority of the time with the children and is granted the right to decide where children will live is known as the custodial parent. The non-custodial parent will typically pay child support to the custodial parent. The amount of child support is calculated by taking a percentage of the non-custodial parent’s “net resources,” as follows:
Issues That Can Lead to Complex Child Custody Disputes in Texas
When a couple chooses to end their relationship, they will usually need to address a variety of issues as they decide how they will proceed with the process of separating their lives from each other. While any type of breakup can be difficult, a situation can become much more complicated when children are involved. Married parents who are planning to get a divorce or unmarried couples who wish to establish their parental roles and responsibilities going forward will need to consider multiple different legal issues. While this is true for all couples, there are some cases that involve complex child custody disputes, and parents in these situations will want to be sure to understand their rights and the steps they can take to protect their children’s best interests.
Situations That May Involve Complex Child Custody Concerns
Texas child custody cases typically involve two separate issues: conservatorship and visitation. Conservatorship, which is also known as legal custody, refers to the right to make decisions about how a child will be raised. In most divorce cases, courts prefer to name parents as “joint managing conservators,” meaning they will share in the responsibility of making decisions for their child. Parents will usually also share physical custody, meaning that they will both have reasonable amounts of visitation time with the child.
Tax Issues to Address in a High Net Worth Divorce
Every divorce case will involve financial issues that a couple will need to address as they divide the property they own and determine whether one spouse will pay financial support to the other. However, high net worth divorces will often require spouses to consider complex financial matters related to high-value assets, multiple real estate properties, investments, business interests, and different forms of income, including bonuses, executive compensation, and retirement plans. When determining how to handle these concerns in a way that ensures that each spouse receives a fair and equitable share of the marital estate, it is important to consider tax issues that can affect the spouses both during their divorce and in the future.
Common Tax Concerns in High Asset Divorces
Some tax-related issues that divorcing couples with a high net worth may need to address include:
What Are Commingled Assets in a Texas Divorce?
When couples get divorced, one issue that they will need to deal with is how to divide the property they own. In some cases, this may involve complex property litigation, especially if a couple has a high net worth or owns complex assets. One issue that can complicate this process is distinguishing between community property and separate property. In some cases, these forms of property can become commingled, making it difficult to determine what types of property should or should not be divided between the spouses.
Examples of Commingled Property
Community property includes all property or assets that either spouse acquired while the couple was married, while separate property includes property the spouses owned before they were married, as well as assets received by a spouse as a gift or inheritance. Separate property can become combined with community property in a variety of ways, including:
What You Need to Know About Dividing Valuable Assets in a Texas Divorce
Getting a divorce can be a difficult and laborious process for any couple, but it can be especially complicated for those who have a high net worth. In these cases, spouses will likely need to address multiple different types of high-value assets, and complex property litigation may be needed to ensure that spouses each receive an equal share of their marital assets. A skilled divorce attorney can help you understand how different types of property should be addressed as you work to complete the process of dissolving your marriage.
Division of Community Property
In Texas, all assets that a couple acquires during their marriage are considered community property, and each spouse should receive an equal share of the marital estate. Some types of high-value assets that may need to be addressed during divorce include:
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