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Complex issues to consider during a high net worth divorce

On Behalf of | Dec 23, 2022 | Blog, High Net Worth Divorce

When a couple with valuable assets splits up, the financial aspect of divorce creates a particular challenge. Understanding the complex issues of a high net-worth divorce helps you prepare.

Like every state, Texas’s unique laws regarding divorce affect how the process runs, including determining who different assets belong to.

Community property and ownership of assets

As a community property state, Texas law considers all assets gained during a marriage the equal property of both partners. Assets from before the marriage may belong to just one partner, but this becomes complicated if the asset grew during the marriage. Figuring out how assets such as investments or retirement accounts should divide becomes a complex issue.

High-net-worth couples often hold unique or significant assets that further complicate things. For example, if both partners own shares in a business, this may create difficulty. Similarly, splitting evenly might be challenging if the couple owns multiple properties.

Uncontested vs. contested divorce

In Texas, couples who agree on how assets should divide may opt for an uncontested divorce. In this type of divorce, both parties agree on the terms, often with the help and guidance of a mediator. While not possible for every couple, in many cases this reduces the stress and overall cost of the process.

In a contested divorce, the two parties disagree on how to divide assets. The ultimate decision often gets decided during a court case.

Divorce creates many complex issues, especially for high-net-worth couples. While each situation is unique, considering your options as soon as possible helps you decide on the right moves.