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High Asset Divorce When Stocks Are Falling

 Posted on April 07, 2020 in High Asset Divorce

TX high asset lawyerIf you are planning to file for a high asset divorce in Austin, or if you or your spouse recently filed for divorce in Texas, we know that you likely have questions about what the division of community property will look like when your investments, including mutual funds and stocks, are worth much less than they were even a month ago. You may be wondering if it could make sense to put your divorce on hold until the stock market resurges, or you might be thinking that you could end up faring better in the long run if you can ensure that community property from your marriage gets divided before the stock market resurges. Divorces are stressful enough without the added anxiety of a declining stock market and a global pandemic.

We want to discuss some of the issues concerning high net worth divorce when the stock market is in decline. If you have questions or need assistance with your divorce during this complicated time, an experienced Texas complex litigation attorney at our firm.

Benefiting and Suffering from Falling Stocks During Your Divorce Case

Depending upon the types of investments you have, some spouses could stand to benefit while the other spouse suffers from falling stock prices during a divorce in Texas. One of the spouses might have specialized knowledge about investments while the other spouse has none of that knowledge at all, and the first spouse might use that knowledge to his or her advantage in order to come out with a community property distribution or settlement that stands to benefit that spouse in the long run.

For example, Spouse A might be an investment banker and likely has particular knowledge about the stocks held as community property. Spouse B might not know anything about investments and may work in Austin as an artist or a musician. When it comes time to divide community property in an Austin, TX divorce, Spouse A might try to obtain certain investments that she or he knows are more likely to rise up in value again, while the investments distributed to Spouse B are unlikely to do the same. Or, Spouse A could push for a distribution of community property of investments that looks on its face like a neutral, 50-50 split, but could leave Spouse A with investments in the future while Spouse B ends up paying unexpected capital gains tax.

Planning for the Stock Market in Your Divorce

While you cannot control the stock market, you can take steps to ensure that community property is divided fairly and appropriately according to Texas law. The following are some steps you can take:

  • Educate yourself about your investments
  • Learn about the cost basis of the stocks that are part of your investment portfolio
  • Think carefully about the divorce settlement, and ensure that you are not awarded a monetary amount of the portfolio (as opposed to a percentage) since the value could shift significantly

Contact a High Net Worth Divorce Lawyer in Austin

Do you have questions about how the volatile state of the stock market is likely to affect your high net worth divorce in Texas? An experienced Austin high asset divorce attorney at our firm can analyze your situation and discuss your case with you today. Beyond property distribution, a complex child custody attorney can also discuss any co-parenting matters with you that are likely to arise in your divorce. Contact Powers Kerr & Rashidi, PLLC online or call us at 512-610-6199 for more information.




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