According to the Centers for Disease Control and Prevention, Texas has one of the lowest divorce rates in the country. However, 1.4 per 1,000 Texans still get divorced each year.
Some of these divorces include an extensive amount of assets, making them so-called “high-asset” cases.
Defining high-asset divorce
High-asset divorce, in simple terms, refers to the dissolution of a marriage where substantial financial resources and valuable assets are at stake.
These cases normally present liquid assets with a value of more than 1 million dollars, though they can also include non-liquid assets such as real estate, investments, businesses, valuable collections and retirement accounts.
In such cases, the division of property becomes complex.
Valuating assets
One of the key challenges in a high-asset divorce lies in accurately valuing the assets involved.
Appraisers and financial professionals may assess the worth of properties, businesses and investments. This process ensures that each party receives a fair share of the marital estate, reflecting the principle of equitable distribution that governs Texas divorce law.
Calculating spousal support
Alimony, or spousal support, is another aspect in high-asset divorces that requires special attention. The court may award financial support to the spouse in need, particularly if there is a significant disparity in earning capacity or if one party contributed substantially to the accumulation of assets during the marriage.
Analyzing pre-nuptial and post-nuptial agreements
Couples undergoing a high-asset divorce often turn to pre-nuptial or postnuptial agreements as a means of delineating asset division in the event of separation.
These legally binding documents can provide a roadmap for property distribution, potentially simplifying the divorce process.
Understanding tax implications
Divorcing spouses should not underestimate the tax implications of these cases. Capital gains, tax liabilities and other financial considerations can influence the ultimate outcome of property division.
There are many factors that spouses must consider while going through a high-asset divorce. However, staying informed about the process can help them navigate it with clarity and confidence.