High Net Worth Divorce in Texas

In a high net worth divorce in Texas, what may initially seem like a straightforward separation can quickly evolve into a complex legal process. Beyond the usual child-related concerns, there are a wide range of financial issues that demand careful attention. These financial matters, including asset identification, valuation, and division, require thorough examination and resolution before finalizing the divorce. Successfully navigating these complexities is crucial to reaching a fair and equitable agreement in a high net worth divorce filing.

Prenuptial Agreements

When selecting legal counsel, opt for an attorney specializing exclusively in divorce and family law, particularly one with a track record in high net worth divorces, as opposed to a general practice lawyer. Consider, for instance, the implications. If you work with a divorce lawyer inexperienced in handling complex cases, they may lack a full understanding of ERISA rules pertaining to prenuptial agreements.

Divorce attorneys understand that a prenuptial agreement may not supersede the distribution of an ERISA (Employee Retirement Income Security Act) plan. Consequently, even if you relinquished your claim to your spouse’s employer-sponsored retirement plan through the prenup before marriage, you might still have a rightful interest in that same retirement plan.

However, this matter becomes irrelevant if you’ve signed an ERISA form forfeiting your future retirement benefits upon marriage. This example underscores the importance of ensuring your divorce lawyer possesses extensive expertise in Texas family law, with a regular focus on complex divorce cases.

For those who’ve entered into a prenuptial agreement, understanding its relevance in divorce is essential. Our divorce attorneys will conduct a thorough review of your prenup, taking into account your unique circumstances and goals. Subsequently, we will engage in a detailed discussion about how it affects your divorce resolution.

Real Estate

Real estate is often one of the most significant assets in a marital estate. Whether your real estate holdings are comprised of a marital home, vacation home, commercial property, or investment property, you will need to determine what portion of the property is subject to equitable distribution and what portion, if any, is exempt from the division of assets.

Factors include marriage date, purchase date, down payment, and payment source. If inheritance, gift, or bequest funded it, share interest may vary.

After identifying real estate assets, you decide to keep or sell them—our TX divorce lawyers then craft solutions to protect your interests. Valuation, including market analyses and appraisals, may be necessary, and if disagreements persist, the courts may step in.

Closely Held Business, Partnership, and Professional Practice Valuations

Generally, unless your divorce is amicable, cases involving business assets in Texas tend to take longer to resolve than those without them. If one spouse owns a business, it often requires a formal valuation and report.

Forensic accountants and actuarial experts are usually hired to assess the business’s fair market value, either jointly or separately. This process involves a comprehensive examination, including:

1. the business site
2. records
3. books
4. general ledgers
5. payroll registers
6. receivables
7. machinery
8. inventory
9. real estate
10. client lists
11. partnership interests
12. enterprise and
13. goodwill.

Also, if you owned the business before the marriage, it will need to be determined if the business is a marital asset. We will need to calculate your spouse’s shared interest in the business if it is.

Whether you are looking to sell the business or continue to run the business post-divorce, our experienced Texas Divorce lawyers can help you develop the right arrangement with your spouse. This can be accomplished through a buy-out, sale, annuitized settlement, or another distributive arrangement.

Stock Options

Navigating stock options during a divorce can be highly intricate. Attorneys meticulously scrutinize factors like the grant date and vesting to ensure an equitable distribution of these assets. Moreover, your settlement agreement can encompass the establishment of a constructive trust, which serves multiple purposes.

This trust not only addresses the tax implications associated with your stock option distribution but also safeguards any post-judgment options. Importantly, it does so while simultaneously protecting your pre-distribution interests and rights.

Retirement Assets

Acquired retirement assets such as a 401k, 403B, IRA, etc. before or during your marriage may be subject to equitable distribution in your divorce. A common misconception is that maintaining an account in your exclusive name before or during marriage prevents your spouse from claiming a share.

In Texas, this is not true in most circumstances. Typically, we subject the value of your retirement account accumulated from the marriage date to the divorce complaint date to equitable division. This also generally holds for pensions, deferred compensation plans, SEPs, and SERPs.

Although these assets may not be physically divided during the divorce judgment, we collaborate with highly qualified experts to draft domestic relations orders. These orders will guarantee you receive the appropriate share and correct benefit amount on a predetermined future date.

Our Role as Texas Divorce Lawyers

Part of our job as your divorce lawyers is to help guide you through the distribution laws. In high net worth divorce situations, we explain any advantages of dividing the retirement asset or offsetting the assets with other assets of the marriage.

We will make sure to discuss and explain in detail all tax ramifications, buy-out alternatives, and the entire QDRO process. As a basic rule, if the asset is earned during the marriage, it becomes a marital asset subject to division, whether the retirement benefit is a pension, IRA, Keogh, 401K, 403B, or even part of an employee stock option plan (ESOP). The division of retirement assets and employee benefit plans is often complicated when pre-marital interests are commingled with marital contributions.

Final Thoughts

If you’re facing a complex or high net worth divorce in Texas, it’s crucial to have a lawyer whose practice is solely focused on family and matrimonial law. Given the complexities of these cases, retaining an attorney with specialized experience in this area will ensure you are best represented.

Your divorce attorney should be thoroughly familiar with Texas laws governing high net worth cases. In high-profile situations, our attorneys prioritize privacy, often utilizing mediation or discreet negotiations to protect your interests.

Successfully resolving a high net worth divorce requires a blend of legal expertise, business acumen, investment knowledge, and experience—all of which are core strengths of the Law Office of Bryan Fagan, PLLC. Whether your case involves intricate issues related to child custody or complex financial matters, it’s essential to consult with one of our highly experienced divorce attorneys. Secure your future today—call us at (281) 810-9760.

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