Some divorces are extraordinary in the complexity of the financial portfolio involved and the sheer value of assets a divorcing couple has accumulated over the years. To complicate it further, a stake in a business could be involved or assets that one spouse accumulated before the marriage. There are some special things that divorcing couples in Texas should consider when divvying marital property in a high net worth divorce.
The first thing to keep in mind is small financial errors during a high net worth divorce can cost one or both spouses dearly. It is crucial to have a correct valuation of all assets and liabilities for the couple. Life insurance is another area that often is overlooked. Life insurance can be an asset that many forget about, it does not fall under the same category as a car or home insurance, but it is an asset.
Lifestyle is another factor that is often shoved to the side of the pile of considerations. The actual cost of maintaining a certain lifestyle might be touched on during discussions but not as much as it should be. How one spouse may lead their lifestyle could drastically change if they are not the main income earner of the household. This is a topic that should be thoroughly discussed to make sure each spouse is getting a fair shake.
There are many factors that go into determining how a high net worth divorce is handled. Understanding one spouse’s financial situation in consideration of both spouse’s assets is critical to determining how the marital property should be divided. Also, the valuation of a couple’s assets will set the stage for how the assets will be divided. This is why it is so important to get an appropriate account of a couple’s entire financial portfolio.
Source: Forbes.com, “Getting the Most from A High Dollar Divorce” Russ Allan Prince, Dec. 1, 2014