In a high net-worth divorce, there are unique challenges presented to your family. Approaching a high net-worth divorce with a plan is essential to your family’s success. Being a high-net-worth divorce does not only impact marital asset division. Rather, child custody issues are also relevant when discussing this topic. In short, no area of your divorce is affected by your financial circumstances.
Having a high net worth means having a heightened sense of alertness during the divorce is critical. There are so many things to keep your eye on that it is possible to lose track of everything. Divorce fatigue is a real thing. There are many burdens associated with maintaining focus during a divorce.
As a result, the attorneys with the Law Office of Bryan Fagan are here to help. We are discussing the topic of high-net-worth divorces in today’s blog post. Additionally, our office wants to go the extra mile for you and your family. Our experienced family law attorneys offer consultations free of charge six days a week. This is where we can address any questions you may have about what you read in today’s blog post.
Every divorce is unique
Just because you have a friend with a high net worth who has gone through a divorce does not mean that your case is going to proceed just like his. Rather, every divorce is unique. This means that you cannot take the small details in your case for granted. As you embark upon a divorce your first thought should be about the most important things in your life. If you have not taken inventory of your life and assessed things from a standpoint related to your family and your finances, then go ahead and do that.
You need to understand what matters most to you in your life. Wandering into a divorce is possible. However, wandering out of a divorce with any type of goal having been achieved is nearly impossible. Rest assured that your spouse is preparing diligently for the divorce. If you fail to do so, then that will prevent you from being able to make the most of your case. Nobody wants to go through a divorce. However, it is those people who take advantage of the process and do what is needed to help themselves and their families that are the most content at the end of a case.
The attorneys with the Law Office of Bryan Fagan understand that you and your family are unique. We take no clients for granted and prepare for your case as we would our divorce. When it comes to the intricacies of family law the Law Office of Bryan Fagan has you covered. Meet with one of our attorneys for a free-of-charge consultation and you will see why so many of our neighbors in Texas choose us for a divorce.
Complex finances mean digging deep for information
In a high-net-worth divorce, you literally cannot afford to miss out on the small details of the case. The facts are too complex for you to take anything for granted. The difference between a well-researched case strategy in a poorly thought-out plan can be millions of dollars. On top of that, you have your child’s financial well-being to concern yourself with as well as your retirement. Simply put, you have too much at stake to take anything lightly in your case.
When you have many competing interests in the case it is easy to feel overwhelmed. When you start to get that overwhelmed feeling the next logical step is to ignore or place less focus on certain topics. Once you start to get comfortable with missing out on certain details in the case that is when mistakes start to happen. For you and your family, it is best to identify those critical areas early. From there, begin to figure out how you can gain as much information as possible in those areas of need.
Most divorces require the use of discovery. Discovery is a process whereby you and your spouse exchange information about the case. That information could be answers to questions or even documents. In short, both of you want to gain a better understanding of the other person’s positions and arguments. This is geared towards being able to help prepare you for a trial or at least settlement negotiations. As you prepare for your divorce it is worth asking yourself what you know and what you do not know about your family’s finances.
How an attorney can help you with the discovery process
Although discovery is common in high-net-worth divorces that does not mean that it is simple. When it comes to being able to prepare for discovery there are two sides to the same coin. One side involves requesting information and documents from your spouse. There is a certain science to this process that requires experience. Your spouse can object to certain questions based on their form or the substance of them. Without a doubt, the last thing you want is to be in a position where you could have asked a question differently and received a different answer.
Being stonewalled by objections from your Spouse in a divorce is a frustrating experience. Objections exist for a reason. Sometimes a poorly worded question should be objected to. However, you should seek to avoid circumstances like that as much as possible. By working with an experienced family law attorney, you can avoid situations involving objections to discovery questions. At the very least, if your spouse does object to a discovery request inappropriately your attorney knows the legal avenues to receive that information despite the objection.
When you are meeting with a family law attorney for the first time make sure to ask him or her about their level of experience. You need an attorney who has served many clients in divorce cases before. Additionally, having experience with requesting and receiving information through discovery is essential. Do not expect anything less than an attorney who serves clients day in and day out in divorce cases. The Law Office of Bryan Fagan Is here for you. Come speak with one of our attorneys about your case and see how any doubts or worries you have dissipate.
Community property division in a Texas divorce
The laws in Texas are unique when it comes to the division of marital property. Most everyone who goes into a divorce understands that property division is a part of the case. However, fewer people understand that Texas has somewhat unique laws on how property is divided. Texas adheres to principles of community property. The big takeaway from that statement is that all property owned by you and your spouse at the time of your divorce is presumed to be marital property. Thus, it is divisible in a divorce.
With that said, it is also possible to own separate property. Separate property is any property owned by either spouse before a divorce or acquired during the marriage by gift or inheritance. In some instances, it is simple to overcome the community property presumption. In other situations, you may need to present evidence regarding this topic. The difference between real estate, for example, being found to be community property or separate property is significant.
Whether you want to protect separate property of yours or assert that other property belongs in the community you need help. This is not an intuitive process where the information and procedure necessary will just magically come to you in the divorce. What you need is an experienced guide to help prepare you for these sorts of circumstances. When it comes to high net worth divorces this is the exact reason why you need an attorney. Being able to help a court distinguish between community and separate property could end up being the most important issue in your entire divorce.
Handling issues related to the marital home
Let’s assume that you and your spouse are getting divorced. The home where you live was purchased during your marriage. Therefore, there is little doubt that the home is community property. What does need to be determined is how you and your spouse are going to handle the home relative to the divorce process. As in: what do you want to see happen with the home?
If neither you nor your spouse want to remain in the home, then it is likely that the house will be sold. Considering the home’s value you must be able to receive an appropriate amount of proceeds from the sale. All the details associated with putting the house on the market, selecting a realtor, and accepting offers should be laid out in detail during the divorce. The more left up in the air the greater the uncertainty moving forward.
On the other hand, if you decide to remain in the home then there are considerations on that front, as well. For instance, do you have the financial ability to provide the necessary upkeep on that house? If the mortgage has not been paid in full then you would become responsible for that loan. Ask yourself whether staying in the home is a tenable position for you to take. Even if you have minor children, it is not worth staying in a home that you cannot afford the mortgage.
Spousal maintenance in a high net-worth divorce
One of the crucial questions that many people run into during a divorce is how their finances will look after the case. This has mainly to do with Post-divorce income. Suppose that you are a stay-at-home mother and wife. You have not worked outside the home in many years. As a result, your resume is quite thin, and your job skills are minimal. Delaying a divorce or even never filing at all may have seemed like a reasonable option. Simply put, you do not have the means to support yourself after the divorce.
Wondering what your options are, you step into the Law Office of Bryan Fagan. You expressed to the attorney that you talked to that you have concerns over being able to live your life after the divorce. The attorney you meet with lets you know that it is possible to receive post-divorce spousal support under limited circumstances. First, you and your spouse must have been married for at least 10 years. Since the two of you have been married almost 30 years that would not be an issue. From there, you would need to have an inability to provide for your minimal, basic needs without financial assistance.
Proving to the court that your spouse can pay special maintenance is also important. A judge will not overload an individual with special maintenance and child support, for example. You need to be able to show that not only do you need special maintenance, but your spouse can pay.
Prenuptial agreements can help high-net-worth individuals
Many situations can be helped by a prenuptial agreement. As you begin a divorce case it may be too late for you to take advantage of a prenuptial agreement. However, for anyone else reading this blog post, there is certainly something to be said for a well-drafted premarital property agreement helping in a divorce.
One of the great misnomers about prenuptial agreements is that they anticipate a divorce. As in once you sign the prenuptial agreement there’s only a matter of time before a divorce is filed. That is simply not true. It is just the same that completing your will does not mean that you are going to pass away the next day. What a prenuptial agreement does is help take some of the pressure off you and your spouse if a divorce does occur.
A well-thought-out prenuptial agreement allows you and your spouse to determine how you want to see your property divided in the event of a divorce. Essentially, you are negotiating with your fiancé about future financial circumstances. This is typically to your benefit given that the spouse is going through a divorce and may not be able to work together adequately.
Even if it is too late for you to draft a prenuptial agreement, a marital property agreement accomplishes the same objectives. The only difference between the two is that a marital property agreement is signed during the marriage itself. Whatever you can do to take the pressure off you and your spouse during a divorce settlement should be explored. A prenuptial agreement may be just what you and your fiancé need to avoid the perils of a high net-worth divorce.
Managing emotions and finances during a divorce is difficult
One of the difficult aspects of a divorce is that you are forced to maintain your composure while dealing with difficult subject matter. A divorce involves issues that affect your everyday life. This is not something where you can assume something in the case will never affect you moving forward. Rather, almost every day of your life after the divorce you will come face to face with the issues decided in the case. As a result, focusing on the minutia of the case can be stressful. That stress may cause you to react differently than you would during other phases of your life.
Having a high net worth divorce also recalls everything you stand to lose in the case. Human nature causes us to look at things from the perspective of the negative first. Very rarely does anyone look at a divorce from the perspective of what they stand to gain. With negative emotions and energies circulating the case it is easy to see why so many people become frustrated. And that frustration gets the best of you and may act in ways that are uncommon for you. At the very least, you may lose interest in maintaining the same focus that you did at the beginning of your case.
An experienced family law attorney knows how to maximize the opportunities presented to you in a case. When you work with an experienced attorney with the Law Office of Bryan Fagan you gain an understanding of the law. From there, you and your attorney can work to apply the law to your case. Whether it is in negotiation or the courtroom, our attorneys know how to serve divorced clients. Thank you for choosing to spend part of your day with us today.
Questions about the material contained in today’s blog post? Contact the Law Office of Bryan Fagan
The attorneys with the Law Office of Bryan Fagan offer free of charge consultations six days a week in person, over the phone, and via video. These consultations are a great way for you to learn more about the world of Texas family law. Before signing a document or negotiating on a subject you do not know well, contact our office. We look forward to the opportunity of serving you during an important part of your life. The Law Office of Bryan Fagan is on your side.
Evan Hochschild was raised in Houston, TX and graduated from Cypress Creek High School. He went on to graduate from Southwestern University in Georgetown, TX with an undergraduate degree in Political Science. While in college, Evan was a four-year letterman on the Cross Country team.
Following in the footsteps of his grandfather and uncle before him, Evan attended law school after he completed in his undergraduate studies. He graduated from St. Mary’s University School of Law and has practiced in a variety of areas in the law- including family law.
Mr. Hochschild is guided by principles which place the interests of clients first. Additionally, Evan seeks to provide information and support for his clients with the heart of a teacher.
Evan and his wife have four small children together. He enjoys afternoons out and about with his family, teaching Sunday school at his church and exercising. A veteran attorney of fourteen years, Mr. Hochschild excels in communicating complex ideas in family law simply and directly.
