High Net Worth Divorce Attorney

Getting Clients Fair Treatment When the Stakes are High

Divorce is never easy for anyone of any background. However, the more assets/wealth one or both spouses have, either separately or collectively, the more complicated the dissolution. This complication is especially true for individuals and married couples with what is considered a high net worth or an estate of approximately one million dollars or more in total assets. Although this amount may seem absurd, it’s not uncommon for people to collect assets that amount to this much if they have worked a considerable length of time in their field.

High net worth dissolutions typically involve high-value stock options, expensive assets like motor vehicles and boats, real estate, retirement plans, and trust accounts. Determining a fair and just division of such complex assets is by no means an easy task. Unfortunately, there is a lot of room for error if an individual plans to handle their divorce without representation.

If you are currently in the throes of a high-net divorce, contact Horak Law for legal representation. We have helped many clients navigate high-asset divorces, including issues such as child support, child custody, spousal support, and property division. We will apply our unique and honed skills to protect your substantial assets, including preventing your spouse from hiding significant marital assets. Reach out to our highly skilled team of divorce lawyers at (713) 225-8000.

What Happens if My Spouse Hides Assets in a High Net Worth Divorce?

Since so much is on the line with a high net worth divorce, it’s not uncommon for one spouse to try to hide or conceal assets in an effort to avoid division. Spouses will typically do this if they feel entitled to that asset and feel they may be receiving an unfair share by the courts. While there may be many reasons behind hiding an asset, concealing assets during active dissolution proceedings is illegal in the State of Texas.

Those found hiding assets could be charged with fraud. If the judge believes the individual has committed the offense, they will calculate the value depleted from the community property as a result of the fraud and then calculate the value of the reconstituted estate. A reconstituted estate is essentially the total value of the community estate that would have existed if fraud had not occurred.

Once the reconstituted estate has been calculated, the judge will then divide it in a manner that is deemed just and right by the court. Having talented divorce attorneys is crucial during the property division of any divorce but is most especially important for high-net-worth individuals. Your lawyer will investigate thoroughly to ensure that all significant assets are included in the marital estate, including retirement accounts, real estate, offshore or foreign assets, vehicles, and other high-value assets.

How Are High-Value Estates Divided?

Dividing assets and property is typically the hardest obstacle to tackle in a high-net-worth divorce. Without a prenuptial agreement, the couple must unanimously agree on how assets are divided to finalize the dissolution without court interference. However, if one or both parties contest the divorce decree’s terms on asset division, then the issue may be pushed to the courts to determine a decision.

If the matter is brought to court, the couple’s assets/property will be subject to common law for property ownership. That means all property will be classified as either separate or community property based on how it was obtained. Any property acquired during a marriage is deemed community property and, therefore, is subject to fair and just division by the courts. Separate property solely belongs to one party and must be obtained prior to the marriage.

To prove an asset is a separate property, the spouse must prove by clear and convincing evidence that they acquired it before the marriage or during the marriage by gift, device, or descent. Compensation awards for any injuries suffered by one spouse during the marriage (with the exception of damages for lost wages) are considered separate property.

It’s not uncommon for couples to have a wide range of costly assets, such as community property, which includes marital homes, family businesses, savings accounts, stock options, vacation homes, investment properties, retirement accounts, and so much more. If the marriage was particularly long, it could be even more challenging to split assets as separate and community assets may be commingled. For these reasons, financial experts, including forensic accountants and financial analysts, are often employed to provide testimony in a high net-worth divorce.

As one example, if an individual purchased an investment property prior to marriage, then it’s considered separate property. However, if, over time, the individual and their new spouse renovated the real estate using some community property, then the spouse could have a strong argument that they have an interest in that property upon dissolution.

What Is the Difference Between Separate and Community Property in Texas?

Texas is a community property state, so one important aspect of dividing property during the divorce process is determining which assets are community property and which are separate property. Evaluating these significant assets is crucial because community property will be divided between the two individuals, while separate property remains the property of just one spouse. Couples with a prenuptial or postnuptial agreement often find it easier to categorize their assets because the terms are outlined in the legal document.

Community Property

Community property is defined as the items in the marital estate that will be divided between the two parties in a divorce. Community assets include significant assets that were obtained or that increased in value during the marriage.

Some examples of community property in high net-worth divorces include:

• Real estate
• Family home
• Home furnishings, including furniture, artwork, and decor
• Vehicles
• Bank accounts
• Investment accounts
• Retirement accounts
• Student loans
• Credit card debt
• Car payments

Separate Property

The matter of separate property often comes up in high net worth divorces as one spouse believes they retain rights to certain assets. However, it is critical to remember that even assets that seem like they are owned by one spouse may be divided in a divorce. For example, a business owned in one spouse’s name could provide income for the family and may be divided as if it were community property.

Some assets that might not be considered marital property include:

• Gifts given before the couple was married
• Items inherited by one spouse alone
• Real estate owned by one spouse before the marriage
• IRA or retirement contributions earned before the marriage
• Investment funds and capital gains on separate property assets

Dividing the marital assets is often contentious, especially in high-asset divorce cases. Too often, one or both spouses attempt to hide assets involved that should be considered community property. With the help of a Houston high net-worth divorce lawyer like those at Horak Law, you can navigate your high net-worth divorce and have the financial situation you need to enter a brighter future.

We will help you understand how to transfer assets, handle the tax consequences of your divorce, and divide complex items such as business assets. Our skilled attorneys have a proven track record, so you can trust us with your complicated financial issues. We understand Texas law and will apply our knowledge and skills to get you the most favorable results possible.

Should You Hire Our Houston High Net Divorce Lawyer?

Don’t take any chances by representing yourself in a high-net-worth divorce. The risks of doing so greatly outweigh the cost of hiring a family law attorney, as all your assets/community property is on the line. Instead, contact Horak Law for experienced legal advice and representation from a lawyer with over ten years in the business.

Set up your first consultation with Matthew Horak of Horak Law by calling our office at (713) 225-8000 or simply submitting an online contact form. Horak Law has offices in both The Woodlands and Houston, but we accept clients throughout the State of Texas, including Fort Bend County, Brazoria County, Liberty County, Galveston County, Harris County, Liberty County, and Waller County, TX.

If you are currently struggling with a high net worth divorce, call Horak Law. Family law attorney Matthew Horak will take the time to listen to your story and utilize whatever legal strategies are necessary to preserve your interests. We understand how important it is to have ownership of the property you’re entitled to, so we will work tirelessly to ensure you achieve a favorable result. Call now for your free initial consultation.