Divorce is inherently a difficult experience as you unravel the life you have built with your spouse. However, this legal process can become even more devastating when your marriage involves significant wealth and valuable properties.
Many people facing divorce find themselves navigating complex financial situations, from dividing investments to determining child support and alimony. If you are considering divorce and have a significant amount of assets, you likely have many concerns about your future. As you prepare for this life-changing decision, here are three critical questions to ask to protect your interests and financial well-being.
What is at stake?
High-asset divorces often involve complex assets, such as real estate portfolios and family-owned businesses. Valuing and dividing these properties can be a complicated process, adding another layer of complexity to your situation. You will need to take stock of everything you own, both individually and jointly with your spouse. This inventory includes obvious assets like your home, vehicles and bank accounts. It must also account for less apparent ones, such as retirement funds, investments and business interests.
How will Texas law divide our assets?
Texas follows community property laws when dividing the marital estate in a divorce. This means that courts consider assets acquired during marriage as joint property, belonging equally to both spouses. This applies even if one spouse earned the income or holds the title in their name alone. However, courts do not always split everything 50/50. Judges can consider factors like each spouse’s earning capacity, fault in the marriage’s breakup and custody of children when deciding what is fair.
Can we avoid litigation?
High-value divorces often end up in courtroom battles, but this does not mean litigation is your only option. You may be able to resolve your disagreements through alternative dispute resolution methods, such as mediation or collaborative law. If you are willing to work together and compromise, you may be able to avoid the time, cost and stress of a court battle.
Safeguarding assets, securing tomorrow
With proper guidance and a clear understanding of your legal options, you can protect your assets and emerge from this challenge on solid financial footing. Remember, divorce, though difficult, is also your opportunity to build a strong foundation for your next chapter.