When the economy is floundering, many unhappy couples are more willing to tough it out, rather than divide limited resources. However, when the economy is experiencing an upswing, unhappy spouses are more inclined to file for divorce. Texas residents who are contemplating a high net worth divorce may benefit from professional advice when seeking to divide some of their valuable collections.
According to a 2018 poll, an estimated 41% of respondents stated that money woes stress a marriage. Therefore it may seem reasonable that an improving economy would lead to less strain on a marriage. Instead, a healthy economy provides opportunities to rebuild financial wealth after a divorce. Along with liquid assets and investment accounts, these high net worth couples may also need to establish the monetary value of non-liquid assets that will also need to be addressed in the settlement agreement.
When non-liquid possessions include such property as artwork, jewellery and other valuables, it can be difficult to arrive at a fair market value. In these circumstances, it is often preferable to enlist the assistance of professionals who can help determine the appropriate valuation of these items. If the two parties are unable to reach a compromise on an equitable exchange, the possessions may have to be sold and the proceeds divided.
One point to keep in mind when dividing material possessions is that these settlements are generally tax-neutral, unless the items are sold and the spouses split the money. Furthermore, since the tax laws regarding alimony have changed, it is believed that this will have an adverse affect on spousal support negotiations. Texas residents who are preparing to end an unhappy marriage — whether it will be a high net worth divorce or not — will likely benefit from the guidance of an experienced attorney who can ensure that the settlement will meet one’s financial needs now and in the future.