Posted on January 14, 2021 in High Asset 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.

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 Posted on January 06, 2021 in Child Support

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:

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 Posted on December 31, 2020 in Child Custody

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.

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 Posted on December 24, 2020 in Complex Property Litigation

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:

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 Posted on December 17, 2020 in Complex Property Litigation

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:

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 Posted on December 07, 2020 in High Asset 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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 Posted on November 30, 2020 in Child Custody

When parents get divorced, they may need to address a wide variety of complex child custody issues. In addition to determining how they will work together to raise their children going forward, they will need to make decisions about when children will spend time with each parent, who will have a say in major decisions about children’s lives, and other matters related to parents’ rights and responsibilities.

Whether parents are able to reach an agreement on these decisions, or a judge makes a final ruling on matters related to child custody, the terms of the parents’ divorce decree are meant to remain in place going forward. However, parents may wish to modify the terms of their parenting agreement in some situations, including cases where a parent plans to move to a new home with their children. Both parents will want to understand their rights and the procedures followed in cases involving parental relocation.

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 Posted on November 23, 2020 in Family Businesses

Business interests are often an important consideration in a high net worth divorce. A family business can represent a significant source of income, and it is likely to be one of the most valuable assets owned by a married couple. Since business interests must be included along with other assets when dividing marital property between spouses, determining the value of a business is crucial for making sure all assets can be allocated fairly. In these cases, spouses should be sure to understand the methods that may be used when performing a business valuation.

Three Methods of Business Valuation

There are multiple different approaches that can be taken when determining a business’s value. Typically, they fall into the following categories:

• Asset-based valuation - The simplest method of business valuation involves a calculation of the total value of the assets owned by a business. The business’s debts or liabilities are then subtracted from this total to determine the value of the company. While this approach can determine the cash value of the tangible assets owned by a business, it may not take other factors into account, such as the business’s goodwill in the community, its relationship with its customer base, and the value that an owner brings to the organization.

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 Posted on November 16, 2020 in High Asset Divorce

divided in divorce are usually homes and vehicles, but there is one other asset that can arguably be more important: insurance policies of any kind, most specifically life insurance. Insurance policies can have significant payouts and can tip the balance in terms of property and asset division.

Child Support and Life Insurance

In Texas, if you have children, it is not uncommon that a court may ask you and your spouse to maintain life insurance policies on yourselves as both a way to provide for the children in an emergency and a way to secure child support obligations. The reasoning is not to give the former spouse a payday in the event of your death, but to ensure that your children are adequately provided for. Some former spouses hesitate to do this, but it is almost always the quickest and easiest way to ensure that your children are protected. Also, it is very often the case that the obligation to maintain life insurance results in a slight reduction in child support expenses for the paying parent.

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 Posted on November 09, 2020 in Child Custody

When parents choose to end their marriage through divorce, they may need to address a variety of complex child custody issues. While parents may be able to work together to reach agreements regarding how they will share custody, disagreements over these or other issues can sometimes spiral out of control and turn threatening or violent. In situations involving family violence or where a parent fears for the safety of themselves or their children, a protective order can address these concerns. However, protective orders can also be based on false accusations, or they may be used in an attempt to gain an unfair advantage during divorce. Those who wish to obtain or defend against a protective order should be sure to work with an experienced family law attorney.

What Can a Protective Order Do?

If a person has allegedly committed acts of family violence (including physical abuse, sexual abuse, verbal abuse, threats to harm a person, or kidnapping) against their spouse, ex-spouse, dating partner, or children in their household, their current or former partner can file a petition for an emergency protective order in family court. This type of restraining order is known as a temporary ex parte protective order. An emergency protective order will be in effect for 14 days, and a hearing will be held to determine whether a permanent protective order will be necessary.

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