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TX divorce lawyerWhile investing can be an extremely profitable means of earning passive income, it can also create difficulties for couples who decide to dissolve their marriage. This is because investments entered into after a marriage takes place, whether they take the form of ownership in a business interest, or the ownership of stocks, bonds, or a retirement fund, must be accounted for and divided upon the dissolution of a marriage. This can cause a number of complications, especially for those who are not represented by an experienced high asset divorce lawyer who can take steps to ensure that the property division process goes as smoothly and quickly as possible.

Assessing Your Options

Whether a couple invests in the stock market, cryptocurrency, or real estate, they will need to address who will retain ownership of those assets before a divorce can be finalized. This can make an already difficult process much more complicated. Fortunately, there are certain options and strategies that can help couples protect themselves during the divorce process, not only emotionally, but also financially.

For instance, many couples with significant assets who decide to divorce attempt the collaborative divorce process, which can help minimize conflict through the pursuit of open and honest communication in an out-of-court setting. Collaborative divorces also help ensure that couples are able to decide the fate of their own property. Alternatively, couples could also choose to attempt mediation, or could even enter into a post-nuptial agreement regarding property division, which is a popular option for those who believe that their marriages are in trouble, but have not yet committed to divorce.

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TX high asset divorceOne of the things that sets many high asset divorces apart from other divorces is the ownership of business interests by one or both spouses. Owning these types of assets can make the property division portion of high asset divorces much more complex, so if you and your spouse have decided to get divorced and either one of you owns a business, it is important to contact an experienced high asset divorce attorney who can help protect your interests.

Do Not Delay

Dissolving a marriage can be a lengthy, costly, and emotional process, so it is not uncommon for many couples who decide to end their marriages to delay actually filing for divorce. While this can temporarily delay the potential difficulties that often come with divorce, it will not eliminate them and can actually end up complicating the divorce process itself. For instance, Texas is a community property state, which means that all of the assets acquired by a couple during the course of a marriage are subject to equitable division. This includes not only assets like real estate and personal possessions, but also any increase in their company’s revenue, profit, and income, so the longer a couple waits to dissolve their marriage, the more they may end up needing to divide during the property division process.

Keep Detailed Records

One of the best ways to ensure that any divorce-related property settlement agreement is fair is to provide the court with detailed business records. These records, including bank statements, invoices, contracts, and bills related to monthly expenses can help establish the value of the business in question, as well as its equipment and assets. Pay stubs and paychecks can also be used to establish income, which can play an important role in determining child support and alimony.

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TX high asset divorce lawyerAll divorces are complex and potentially emotional. Dissolving the marriage of a couple with unique or significant assets, however, tends to be especially difficult, as it often comes with a host of unique legal challenges, so if you are thinking about filing for divorce in Texas, it is important to speak with an experienced high asset divorce lawyer who can advise you.

What Is a High Asset Divorce?

Narrowing down what qualifies as a high asset divorce can be difficult, but the following are all good indicators that a divorce will involve considerable assets and come with unique challenges:

  • Both parties earn a significant income.
  • The parties own multiple real estate properties, which could include vacation homes, undeveloped real estate, and rental properties, in addition to the family home.
  • The parties own a number of vehicles, including motorcycles, boats, and vintage cars.
  • One or both parties own business interests.
  • The parties have a diverse investment portfolio.
  • The couple has significant savings, retirement benefits, or life insurance policies.
  • The parties own collectible items, such as jewelry, artwork, and memorabilia.

Couples who own some or all of these types of properties should have a thorough understanding of Texas’ community property laws, which require divorcing couples to divide their assets in an equitable and fair manner. While this could mean that a couple’s marital assets are divided down the middle, it could also result in one party being granted a greater portion of certain properties. Ultimately, what is considered fair and equitable will depend upon the parties’ unique circumstances.

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TX divorce lawyerIt can be difficult, in today’s world, to imagine living our day to day lives without having at least one credit card. While credit cards can be a good way to improve credit and allow for more flexible spending, they can also pose specific difficulties during divorce. This is especially true for couples who are involved in high asset divorces, which often involve various joint credit cards and accounts, so if you and your spouse have decided to file for divorce and both of your names are on multiple bank accounts or credit cards, it is important to speak with an experienced high asset divorce lawyer who can ensure that you are not saddled with more than your fair share of debt.

The Downside of Owning Joint Credit Cards

Although there are a number of benefits to owning a joint credit card with a spouse, there are also a few downsides, which usually reveal themselves during divorce. For instance, it is not unheard of for one spouse to end up on the hook for charges that he or she did not authorize. While this may be troublesome during a marriage, it can wreak havoc on a person’s post-divorce finances, as the last thing newly divorced couples need is to be saddled with more debt.

Separating one’s credit cards from those of their spouse in the first stages of divorce is one of the best ways to avoid these types of problems. In some cases, this will require canceling the cards, although if the parties have an amicable relationship this may not be necessary. Instead, one party can just have his or her name removed from the account and the other party can request a change of account number.

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TX high asset divorceDivorce 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.

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TX high asset lawyerIf 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.

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TX divorce lawyerOne 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.

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TX divorce lawyerThe 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.

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