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Questions to Ask Your Lawyer in a High Asset Divorce
When you are meeting with attorneys and deciding how to proceed with your Texas high asset divorce, it is incredibly important to ensure that you have the right advocate on your side. While there are many different law firms that may do work in family law, it is essential to hire an experienced Austin high asset divorce attorney who has particular experience working on high net worth divorce cases and ensuring that high asset divorces are handled as smoothly as possible. You also want to be certain that you have an attorney who understands your particular needs and will tailor any legal strategies to fit the facts of your specific case. When you are in the early stages of planning for a high asset divorce, the following are some of the questions you should ask potential attorneys with whom you schedule consultations.
Do You Handle High Asset Divorce Cases?
How to Protect Your Credit After a High Asset Divorce
If you were the primary earner in your household during your marriage, and if you also have substantial separate property (as a result of earnings prior to the marriage or a family inheritance, for example), it will be important to think about how you can protect your credit and your financial profile after a high asset divorce in Texas. Even if your soon-to-be ex-spouse does not intentionally make bad financial decisions after the divorce, some of those poor financial decisions could impact your credit if you do not take specific steps ahead of time.
As you may know, Texas is a community property state. As such, most property acquired after the marriage will be classified as “community property,” as opposed to “separate property,” and it will be divisible between the parties. You may be thinking that you do not need to worry about your spouse harming your credit or financial profile since your spouse will receive a substantial amount of community property. However, if your spouse does not have much experience handling financial accounts and assets, that money may go quickly. The following are some recommendations for protecting your credit after a high asset divorce in Texas. If you have additional questions, a Texas high asset divorce lawyer can help.
More Common Examples of Complex Property in a High Asset Divorce in Texas
When you are in the early stages of planning for a high asset divorce in Texas, you should know that you will likely be facing a divorce involving the classification, valuation, and distribution of many different types of complex property. We have told you about some common types of complex property in an Austin high net worth divorce, including valuable collections of art and books, as well as business holdings and investments. Yet these are not the only types of complex property that will need to be divided in most Texas high asset divorce cases. We want to tell you about some more common types of complex property that may need to be evaluated in a high net worth divorce.
Keep in mind that Texas is a community property state, which means most property acquired after the date of marriage will be considered community property and thus will be subject to division. If you have questions or concerns, you should speak with an aggressive Austin high asset divorce attorney today.
Common Types of Complex Property in an Austin High Net Worth Divorce
High asset divorces in Austin, Texas are different from other divorces in many different ways. One significant distinction is that high net worth divorces almost always involve various types of complex property that must be classified and, in many cases, divided between the spouses according to Texas community property laws. If you are planning to file for divorce, or if you are in the early stages of your Austin divorce, you may already know that Texas is what is known as a “community property” state. Accordingly, most property acquired after the date of marriage will be classified as community property, and it will be divided between the spouses in a manner that the court determines to be “just and right.”
Classifying and dividing certain types of property can be extremely complicated, however, and high net worth divorce cases usually involve a substantial amount of complex property. The following are some of the common types of complex property that you may need to consider in your Texas divorce. And if you need assistance, you should know that an aggressive Austin high asset divorce attorney can represent you.
Does Income Affect Child Custody in an Austin High Asset Divorce?
In a high asset divorce in Texas involving minor children from the marriage, each spouse’s assets may not be equal, and the lesser earning spouse may worry that income or assets could impact the court’s child custody decision. To put it another way, in high net worth divorces where one of the spouses is the high earner or has significant family money, the other spouse might have concerns about whether a relative lack of income and assets could mean that she or he will not be eligible for child custody.
It is important for parents to know that the Texas Family Code provides guidance for making child custody determinations (known as conservatorships in Texas), and the focus of any child custody order is the “best interest of the child” standard. To be clear, Texas courts take into account a wide variety of factors in deciding what type of child custody situation is in the child’s best interests. While a parent’s income or assets could play a role in some of those factors, it is essential to know that a parent’s earning ability or relative assets are not a factor for deciding who will be a conservator for the child. A Texas high net worth divorce attorney can say more.
Do I Actually Need a Divorce Lawyer in My High Asset Divorce?
When you are starting to think about filing for divorce in Texas and you own substantial assets, you may be thinking about how the community property rules in Texas will result in the majority of your assets being divided between you and your spouse. Accordingly, you may be wondering whether it makes sense, or whether it is actually worth it, to hire a Texas high asset divorce lawyer in your case. You might have heard of friends who went through a divorce process on their own and were able to work out a marital settlement agreement through communication with their spouse. While there are occasionally situations in which a couple can go through a divorce relatively easily without an attorney, it is not advisable to handle a high net worth divorce on your own.
In high asset divorces in Texas, the parties will be dealing with particularly complex and valuable property, and there is significantly more money at stake. Even if you have a relatively amicable relationship with your spouse now, and she or he promises to be fair, you should know that the process can quickly become contentious if you cannot actually reach an agreement. There is also a possibility that your spouse could be concealing assets from you. The following are just some of the reasons it is essential to have a lawyer during your high asset divorce.
Is Mediation Helpful for a Texas High Net Worth Divorce?
If you are planning to file for divorce in Texas and you know that you and your spouse have not reached an agreement about how your assets will be divided, the prospect of property division can be anxiety-inducing and complicated. Dividing assets is especially complex in high asset or high net worth divorces, where married couples own substantial amounts of valuable property in many different forms. In such cases, those parties may want to take steps to prevent the court from making the final decision about how their community property will be divided. You may know that divorcing spouses can agree to a property settlement agreement in which they determine how their community property will be divided.
However, if you are involved in a contentious separation or divorce with your spouse, you may be wondering how you could ever get to the point of reaching a property settlement agreement. Family law mediation may be beneficial. We want to tell you more about how mediation can help in such cases, and to emphasize that an experienced Texas high net worth divorce lawyer can assist with your case.
Handling Out-of-State Property in a High Asset Divorce
Many couples in Austin, Texas with significant assets own property outside the state of Texas. In some cases, a couple may even have international assets, such as real estate or bank accounts. While these types of property are not as common in divorces involving middle-class couples, high net worth divorces in Texas often do have assets located in other states and other countries. When assets are located outside of Texas, this fact alone does not mean that they will not be subject to division. Rather, any assets, regardless of where they are located, will need to be classified and, if they are community property, divided between the spouses.
We want to provide you with more information about handling out-of-state property in a Texas high net worth divorce. An aggressive Austin high asset divorce attorney can discuss the specific details of your case with you today.
Out-of-State Property Must Be Classified
How Discovery in a High Asset Divorce Can Prevent One Spouse from Hiding Assets
When a wealthy couple is getting divorced in Texas, each of the parties may have concerns about having assets properly classified and appraised, and one or both parties might have worries about the other spouse attempting to hide valuable assets so that they are not divided in the divorce. As you may know, under Texas law, nearly all assets acquired by either spouse after the date of marriage are considered to be “community property,” and they will be distributed between the parties in the divorce. There are many different methods for preventing a spouse from hiding assets in a divorce, and for revealing hidden assets when one of the spouses has attempted to conceal those assets.
One way that an aggressive Texas high asset divorce attorney can help is by using the process of discovery to prevent assets from being hidden or can help to uncover assets. We want to tell you more about discovery, and how some of the tools of the discovery process can help you in your high net worth divorce.
Who Pays for a Child’s Extracurricular Activities After a High Asset Divorce?
When parents in Austin decide to file for divorce and they have minor children together, the divorce process often gets more complicated. These complications tend to be even more amplified in high net worth divorces in Texas where the children attend expensive private schools and participate in high-priced extracurricular activities. For example, in and around Austin, many parents pay for their children to participate in a variety of sports, and kids may participate on travel sports teams that require additional expenses. Other kinds of extracurricular activities and hobbies can also be extremely expensive, from classical music lessons to equestrian sports.
Texas child support laws are streamlined based on a noncustodial parent’s average monthly net income, and they do not take into account the costly extracurricular activities and sports that are common for kids in high asset families, nor does Texas law allow a court to add onto a child support obligation for private school expenses. We will tell you more about how child support laws do work in Texas, and we will say more about how parents ultimately can ensure that their kids can remain in their current school and extracurricular activities despite the divorce.
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