call us409-392-1511

Offices in Galveston and Hurst

Unique Property Division Issues in a High Net Worth Divorce

 Posted on March 07, 2023 in Divorce

Galveston, TX High Net Worth Asset Division Divorce LawyerDuring a divorce, a couple will need to decide how to divide their property. This can be complicated and emotionally-difficult process, regardless of the circumstances of the case. However, property division can be especially complex in high net worth divorces, because higher amounts of money and more valuable assets will be involved. While the basic principles of property division remain the same, there are some unique issues that must be considered when it comes to a high net worth divorce.

Characterization of Assets

The first step in dividing property is determining how each asset should be characterized. In most cases, assets will either be defined as either community or separate property. Community property typically includes any assets acquired during the marriage, while separate property includes assets acquired by either spouse prior to the marriage or through an inheritance or gift.

In some cases, however, assets may not fall neatly into one category or another. For instance, if one spouse owned a business before getting married but then used marital funds and labor to expand the business during the marriage, this could lead to complex characterization issues that may require the help of financial experts to resolve. For example, a forensic accountant may be able to trace assets back to their source and determine whether they originated as separate property or were purchased or otherwise acquired through the use of marital funds or income earned during the marriage.

Valuing Assets Accurately

One of the most important aspects of a high net worth divorce is an accurate valuation of all assets. This includes both marital and separate property. It is important to ensure that each asset is valued properly so that each spouse receives their fair share of the marital estate and will have sufficient resources to meet their needs going forward. To do this, it may be necessary to hire professionals such as accountants or appraisers who can determine an accurate value for assets such as real estate, businesses, art collections, and investment portfolios.

Tax Considerations

Finally, it is important to remember that certain tax consequences may arise for either party depending on how specific assets are divided between spouses. Capital gains taxes may apply if certain assets are sold during the divorce process, and tax credits or deductions may be available based on ownership of business assets. Property taxes will also apply to real estate that will be owned by either spouse. It is essential for divorcing spouses to consult with a qualified tax professional who can review their situation and advise them on how best to proceed without incurring unnecessary taxes or other penalties down the road. 

Contact Our Galveston County High Net Worth Divorce Lawyer

Property division issues in a high net worth divorce require special consideration due to their complexity and the potential financial consequences for either spouse. By taking factors such as accurate valuation and taxation into account, a couple can reach an equitable agreement that will protect the interests of both parties. During a complex or contentious property division process, the experienced Galveston high asset divorce attorney at Daniel R. Bacalis, P.C. can provide invaluable guidance. Contact us at 409-392-1511 to set up your free consultation today.


Share this post:

Connect With Us

contact us

To learn more about our services or schedule a free consultation, call 409-392-1511 or fill out the form below:

Error! Form not found :(
Elite Lawyer badge badge badge badge badge
Back to Top