Three Issues to Consider in Your Collin County High Net Worth Divorce

 Posted on April 26,2022 in Divorce

When two busy, ambitious people with successful careers and substantial asset ownership get divorced in Texas, special complications can arise due to the more valuable and complex nature of the assets. High net worth individuals, typically defined as owning liquid assets worth between one and five million dollars, generally have a more difficult time negotiating issues like child support, spousal support, and property division. Here are the ways that a high net worth divorce can affect these issues. 

Child Support

Generally, child support is determined using both parents’ net resources and how much time each parent spends with the children. For high-net-worth parents, net resources will include their income after taxes as well as bonuses, income from rental properties, capital gains, dividends, gifts, and more. While there is a cap on the amount of a parent’s net resources that can be considered when setting child support payments, a child’s actual expenses can make payments higher than the typical formula might suggest. 

Spousal Support

Spousal support is common in high net worth divorces because one spouse’s income often vastly exceeds the other spouse’s income, making the lesser-earning spouse financially dependent on the other for sustaining their lifestyle. Spouses can make a contractual agreement about spousal support payments, or a court can set it for them, but spousal support is not automatic and certain eligibility requirements may need to be met in order to qualify. 

Property Division

High net worth individuals often own significant property before they get married, making it necessary to determine which assets are community property and which are personal property. Generally, any property acquired during the marriage, with the exception of gifts and inheritances, is community property. 

After an asset has been determined to be community property, it must be valued so the total value of the assets can be divided. Determining an asset’s value may require the help of financial professionals with experience in asset valuation and sales, especially for collectibles, art, or other unique items. A great divorce attorney will have working relationships with the necessary experts, including forensic accountants who can help spouses find any assets that have been hidden or commingled with community property. 

Schedule a Complimentary Consultation with a Collin County High Net Worth Divorce Lawyer

While divorce is always a headache, high net worth divorces present special challenges that require the help of a competent attorney. At The Law Office of Linda Risinger, our team of Collin County high net worth divorce lawyers can help you manage every aspect of your divorce with the kind of skill that only comes from extensive experience. Call us now at 972-294-6533 and schedule a complimentary case review. 

Source: 

https://www.nerdwallet.com/article/finance/high-net-worth