Divorce can place financial strain on even the most conscientious and budget-minded person, but is especially common when the couple in question has unique, diverse, or especially valuable assets that are difficult to divide. There are, however, things that couples can do to help them financially prepare for a divorce, while also maintaining their current standard of living. To learn more about the financial consequences of divorce, whether you or your spouse could be eligible for alimony, or how your assets will be divided upon the dissolution of your marriage, please contact one of our dedicated high asset divorce attorneys for advice.

Reviewing Your Financial Needs

When a couple decides to divorce and a court holds a hearing on the issue of temporary spousal support, the judge will require the parties to disclose not only their assets and debts, but also their expenses. When assessing the latter to determine whether to award post-divorce maintenance, courts will assess which of each party’s expenses are reasonable and necessary. This includes the cost of everything from food, clothing, and vehicle expenses to utilities, legal fees, rent, and even entertainment. Having evidence of these expenses from the outset of the case can help the entire property division process go much more smoothly, while also clarifying each party’s specific financial needs going forward.

Cutting Extra Costs

Although it can be difficult to cut items from a budget that one is accustomed to, doing so is often a crucial step in helping divorcing spouses learn to live within their new incomes. In most cases, divorce will have some sort of impact on a divorcing couple’s standard of living, at least in the short term and while courts attempt to mitigate this by equitably dividing the divorcing parties’ property, divorce still almost always comes with a financial effect. Operating within a restructured budget can be instrumental in helping people adapt to their new financial situations, while helping ensure that their standard of living does not drastically change.

If you are recently divorced or are still in the process of dissolving your marriage, you may be nervous about your financial future. Fortunately, there are steps that divorcing parties can take to help them redefine their financial situations after divorce, so if you are considering divorce and have questions about the state of your finances after your marriage is dissolved, you should strongly consider speaking with an experienced high asset divorce lawyer who can explain your legal options.

Preparing Yourself for Financial Upheaval

Even the most amicable divorces come with a fair amount of turmoil, especially when it comes to finances, which the parties can expect to drastically change going forward. Some of the most common changes include:

• A potential decrease in net income;
• The loss of half of your assets;
• The need to relocate;
• The need to reevaluate your estate plan, taxes, and beneficiary planning; and
• The need to learn new financial skills, such as investing and budgeting.

Fortunately, divorcing parties do not need to go through these changes alone, but instead can rely on a team of financial planners, forensic accountants, and experienced high asset divorce attorneys for assistance.

One of the most difficult components of many high asset divorces involves the division of business assets. Although having a pre or postnuptial agreement can make this process much simpler, not all couples enter into these types of agreements, which means that either a court or the parties themselves will need to decide how any business interests will be split. To ensure that the division of your marital assets, including any business interests, is fair and equitable, please contact an experienced high asset divorce attorney who is well-versed in Texas law and can advise you accordingly.

Is There a Premarital Agreement?

If a couple entered into a premarital agreement and one of the parties already owned a business at the time, then the fate of that company in the event of divorce should have been included in the agreement. In these cases, how the business’ assets will be divided depends on the terms of the agreement, which could mean a number of different things. For instance, the parties might have previously agreed that the entire company would go to one spouse in the event of divorce, or that both would receive an equal share.

Just because a couple did not enter into a premarital agreement before getting hitched, does not mean that they are out of luck when it comes to dividing their business upon divorce, as married couples also have the option of entering into postnuptial agreements that account for these types of assets.

The tax reform laws that went into effect early last year have had a significant impact on American taxpayers, especially couples with diverse or valuable assets who are attempting to obtain a divorce. Fortunately, there are a few tax strategies that can help divorcing couples reach a settlement agreement that is in all parties’ best interests. For help navigating your own complex divorce, please contact a dedicated high asset divorce lawyer who has the resources and experience to assist and advise you.

Selling the Family Home

Spouses who have made the decision to file for divorce are encouraged to take a number of steps that could assist them with their tax situation following the dissolution of their marriage. Selling the family home, for instance, can save couples a significant amount of money following divorce. This is largely due to the fact that property taxes are now no longer fully deductible, which means that if one party retains the family home, he or she could end up with a much higher property tax payment that in previous years. Similarly, selling secondary real estate or vacation homes can help couples consolidate their funds and secure their financial future going forward.

Negotiating the Value of Dependents

Tax experts also recommend that divorcing couples with significant assets who also share children, negotiate the value of those dependents during the settlement process. This is an important step because the recent tax reform also lowered the exemption that a parent can claim for each child, although the child tax credit was increased from $2,000 to $1,000. Unfortunately, that credit begins to phase out for those with $200,000 or more of income. However, this can be countered through negotiation by allowing the lower-earning spouse to claim those credits in exchange for other assets.

While ending a marriage is always a complicated process, certain types of divorces are notorious for being especially difficult. Couples with significant, unique, and diverse assets, for instance, often face more difficulties when it comes to accounting for and dividing up marital assets when dissolving a legal union. Fortunately, many of these problems can be avoided if the parties involved retain experienced high asset divorce attorneys who can ensure that their divorce is resolved as quickly and as smoothly as possible.

Identifying Assets

There are a number of complications that can arise during any divorce. Some, however, are particularly common in high asset divorces. Dividing marital property, for instance, tends to be much more difficult for couples with significant assets. This is largely due to the fact that a couple’s finances become more complicated as wealth is amassed. As a result, accounting for the many forms of property, which could range from real estate and business interests to stocks and other investments, can become a complex process. For these reasons, couples with significant assets are often encouraged to retain a forensic accountant who can help them track down all of their financial holdings, which in turn, can help ensure that any property settlements reached by the parties will be as fair as possible.

Appraising Assets

It is also much more difficult to appraise all of a couple’s property in a high asset divorce, as the assets tend to be more complex. For this reason, couples who decide to dissolve their marriages and who own diverse or unique property will need to obtain individual appraisals from experts for assets, such as: