As a high net worth individual going through divorce in Texas, you’ll have many questions about what will happen to your assets, how your financial situation will change in the future and the steps you can take to maintain your standard of living.
While there’s no way of knowing exactly how the divorce process will shake out, there are steps you can take to protect your rights and put your mind at ease. Creating an asset division checklist is one of the best steps you can take.
No two individuals will create an identical checklist, but there are four basic categories most people can use to organize it. These include the following:
- Real estate: In addition to the family home, this can include assets such as rental property, vacation homes, undeveloped land and commercial real estate.
- Personal property: This is one of the most extensive categories for most high net worth individuals, as it includes assets such as motor vehicles, antiques, china, jewelry, clothing, furniture, electronics, collectibles, boats and campers.
- Financial assets: For high net worth individuals, this category has the potential to hold the most value. Common assets include bank accounts, cash, retirement accounts, stocks, bonds, mutual funds, CDs, annuities, life insurance policy cash values and trusts.
- Business assets: If one or both of you own a business, assets such as commercial real estate, company bank accounts and office equipment may come into play.
As you move your assets into these four categories, pay close attention to any liabilities that belong to the two of you. For example, you may have a mortgage on your family home, which will impact the proceeds in the event that you decide to sell it.
A high net worth divorce can pose a variety of legal and financial challenges, all of which you must prepare for. Understanding your legal rights will go a long way in helping you obtain the assets you deserve, all while feeling like you got a fair deal.
An asset division checklist won’t solve all of your property division problems, but it can definitely give you some direction before, during and after the divorce process.