High-net-worth divorces are often far more complex than other types of divorces. A couple with a high-net-worth may not only have assets of a particularly high value, but of a wide variety. For example:

• Real estate holdings
• Business interests
• Investment portfolios
• Retirement accounts
• Luxury vehicles and collectibles
• Intellectual property and royalties
• Trusts and estate planning vehicles
• Deferred compensation and stock options
• International and offshore accounts 
• And more. 

These kinds of assets make divorce a far more intricate process, mainly due to their value, unique structure, and the legal considerations that surround them. 

If you’re preparing to go through divorce and your marital property falls into the high-net-worth category, your main goal is likely to protect your share of the assets, ensure a smooth and efficient divorce, minimize financial losses, and safeguard your privacy. In this blog, we’ll shed some light on some key steps you can take to accomplish this objective with the aid of an experienced high-net-worth divorce lawyer, and start your new chapter on the right foot. 

Consulting with a Skilled High-Net-Worth Divorce Lawyer

Having a high-net-worth adds an additional level of complexity to divorce. It is in your best interests to seek the aid of a divorce attorney that has significant experience in high-net-worth divorces in Texas and understands everything they involve. An experienced firm can not only help you protect your financial interests and negotiate favorable settlements, but also develop a strategy aligned with your personal and financial goals. Moreover, a high-net-worth divorce attorney can guide you through other complicated matters like child custody and child support (if you have kids), spousal support, and more. 

Gathering Key Financial Documents

One of the first steps in any divorce – but particularly in a high-net-worth divorce – is to gather all of the necessary financial documents. The more documentation you are able to provide to your attorney, the better picture you’ll be able to paint for them as far as what assets and debts you have. Some crucial documents include, but are not limited to:

• Income statements – W-2s, 1099s, recent pay stubs, and income tax returns
• Bank and investment account statements – both personal and joint accounts, including savings, checking, stocks, and retirement accounts
• Property and real estate records – deeds, titles, mortgage statements, and appraisals for all owned properties
• Debts and liabilities – Statements for credit cards, loans, and any outstanding debt that may need to be divided
• Insurance policies – Life insurance, health, and property insurance policies, especially those with significant cash values or dividends
• Prenuptial or postnuptial agreements – If you and your spouse have either of these agreements, you should present it to your attorney as soon as possible so that they can review it and determine how the terms will impact the financial aspects of your divorce

Taking an Inventory of Valuable Assets

Another critical piece of painting a financial picture for your attorney includes taking an inventory of other valuable assets that aren’t as easily valued as those listed above. This step might require hiring a financial professional to properly appraise the item or asset. Some examples might include:

• Business interests – Documentation for any business holdings, including profit/loss statements, ownership shares, and valuations.
• Luxury items and collectibles – High-value items such as jewelry, art, vehicles, and antiques with appraisals or valuations.
• Intellectual property – Records for any patents, copyrights, or trademarks owned
• Real estate holdings – primary residences, vacation homes, rental properties, commercial buildings, and undeveloped land
• Trusts and family wealth – revocable and irrevocable trusts, family trusts, dynasty trusts, and charitable trusts
• And more. 

Protecting Access to Financial Accounts

Texas is a community property state, meaning spouses are considered joint owners of nearly all assets and debts acquired during the marriage. However, there are still some exceptions, and it’s important that you work with your attorney to put strategies in place to shield both your separate and joint assets from nefarious activities like unauthorized transfers, spending sprees, or attempts to hide assets. 

These exceptions include:

• Property protected by a prenuptial agreement (which overrides community property laws)
• Property received by one spouse through inheritance, a will, or a trust fund
• Property acquired before the marriage
• Property gifted to one of the spouses
• Money received from a personal injury settlement or award
• Debts, like student loans, incurred before marriage

Remember, separate property can become community property if it’s commingled in a joint account and can’t be identified, or if its legal ownership status is changed to include a spouse in joint ownership. Confer with your attorney if you aren’t sure which assets are community property and which are not. 

Updating Estate Planning Documents

It’s necessary for everyone who gets divorced to review and update their wills, trusts, and powers of attorney to reflect their new circumstances, but especially so for high-net-worth individuals. You will need to manually remove your spouse from any documents that grant them control or access over your assets, as this won’t be automatic. Consult with a skilled estate planning attorney who can guide you through the process of revising your old documents, or revoking them entirely and creating new ones. 

Working with Financial Experts

Financial experts like forensic accountants, business valuators, business attorneys, and financial planners will be critical in your high-net-worth divorce. They can help you and your divorce attorney identify any hidden assets or suspicious transfers, get accurate valuations of any business interests or professional practices, and offer guidance on structuring assets to minimize tax consequences and secure your post-divorce finances. 

Trust De Ford Law Firm To Put Your Goals Within Reach. Schedule A Free Case Evaluation Today!

With over 50 years of collective practical experience, our dedicated legal team understands the challenges that a high-net-worth divorce presents in Texas. We prioritize your goals and the vision you have for your life after divorce, so you can trust us to help you protect everything you’ve worked hard for. 

Most high-net-worth couples we work with are determined to safeguard their privacy and keep their financial information confidential by reaching favorable agreements outside of court. If this is your objective, we can give you a substantial advantage. However, we are also strategic litigators who aren’t afraid to fight for your interests in court if that is the best way to protect your interests.

To take the next step and learn more, call our firm today to book your free case evaluation and speak with a member of our team.