Executives and business owners are not exempt from the perils of real life, love and loss. Divorce can reach its tendrils into any marriage, regardless of how wealthy, poor, educated, or how in love a couple once was. Texas executives and business owners may want to take extra caution to safeguard their financial future should a dissolution of nuptials appear on the horizon, as a complex divorce could be time-consuming and expensive.
Many legal and financial experts report that one of the most overlooked aspects of a high asset divorce is an executive's failure to look all aspects of his or her employment, including stock options, retirement, stock plans and income taxes. All 401(k)s, life insurance policies and wills should also be updated prior to the finalization of a divorce to list new beneficiaries. This will clearly outline one's wishes in the event that the executive should die before the divorce is complete.
Enlisting the help of attorneys and financial advisers early on will help to make the separation easier financially and make the division of assets as equal as possible. Keeping accurate and organized records of business transactions, especially with the acquisition of property, can help cut down on time and expense. Up-to-date financial and asset records will help the financial adviser to make projections regarding the impact of taxes and inflation on the proposed divorce settlement.
During the course of a marriage, couples should both be actively involved in joint finances and keeping track of all investments and property. By doing so, each spouse will have the knowledge of financial standing within the union to seek what is fair should the marriage dissolve. Texas individuals involved in a divorce can seek the aid of a skilled family law attorney to focus on ensuring that marital finances are accurately and rightfully divided in a complex divorce.
Source: chicagobusiness.com, "Wealth Management: The Executive Divorce", April 16, 2017