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Texas divorce: Issues when high assets are involved

Monday, July 16, 2018

When most couples around the country decide to end a marriage, the discussion of finances is often one of the more complicated issues addressed. When the couple is wealthy, the discussions are likely to be more contentious in a Texas divorce. Several cases in another state highlight the complex issues that arise in a high asset divorce.

For example, a prenuptial agreement was in place for one couple, an investor and a business owner. The investor had founded a company a year prior to the couple's marriage. Within four years, the company had assets of $1 billion. The business owner petitioned the court to nullify the prenup since the investor's net worth had significantly increased while they were married.

Many in the information technology field make high salaries and want to protect what was earned prior to marriage. Still others want to move on from a spouse after their income level has increased significantly. Several types of compensation received in high tech businesses are defined as income, such as salaries, startup equity or restricted stock units. These income types may be difficult to define when determining how to divide assets.

Texas is a community property state. Community property is defined as all the property each spouse acquired during the marriage. If there was property owned or inherited by one spouse prior to the marriage, it is considered to be separate property. Whether middle class individuals or billionaire entrepreneurs, experts cite an increase in the creation of prenuptial agreements.

No matter what the income level, it is vital to protect one's financial position when going through a Texas divorce. An experienced divorce attorney could provide much-needed guidance in the divorce process. Having a knowledgeable lawyer working on behalf of a client can bring peace of mind during divorce proceedings.

Source: theguardian.com, "Big money, big ego, big bills: how to get divorced Silicon Valley style", Olivia Solon, April 19, 2017

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