Austin High-Asset Divorce Attorney

Most divorces involve disagreements that the parties must negotiate, mediate or litigate. When a divorce involves high-value assets, those disagreements can become extremely complicated. Choosing an attorney who is knowledgeable and experienced in handling these challenging cases can make a critical difference in the outcome of your divorce. At Powers Kerr & Rashidi, PLLC, we guide clients through complex, high-asset divorces with strategies designed to safeguard their interests and protect their rights throughout the process. We also understand that privacy is often a top priority for clients with significant estates. Because of this, we strive to manage sensitive issues quietly. We use strategies to keep your financial details off the public record whenever we can.

What Are Community Property Rights In A Texas Divorce?

In Texas, property acquired during marriage is presumed to be community property and, therefore, may be subject to division between you and your spouse during a divorce proceeding. Community property includes all real and personal property, and the increase in the value of that property, acquired by either spouse during the marriage. This means that both spouses have an equal interest in community property, and it is typically divided equally in a divorce.

On the other hand, separate property refers to property that one spouse owned before the marriage or property that was acquired during the marriage through inheritance or gift. Separate property is not subject to division in a divorce. However, income from separate property that is earned during the time of the marriage becomes community property. For example, if one spouse owned a rental property before the marriage and collected rent during the marriage, the court would consider the rental income community property.

Separate and community property often mix in high net worth cases. You might deposit separate funds into a joint account. You might use that money to improve a shared asset. We must trace where those funds started. Our team uses forensic accounting to find the source. This confirms what property belongs to you. It also helps us calculate the community estate correctly.

Understanding the distinction between community property and separate property is crucial in a high net worth divorce, as it can significantly impact the division of assets and the financial future of both spouses. Our attorneys at Powers Kerr & Rashidi, PLLC, who are board-certified in family law, are well-versed in navigating these complex property issues and advocating for our clients’ financial interests.

Valuing And Dividing High-Value Assets

To determine how much is at risk in a high-asset divorce, we frequently need to rely on formal property appraisals. We look beyond simple valuations. We also review the tax results of dividing assets. Selling an investment account creates different taxes than moving a retirement plan. These choices change what you actually keep. We structure the division to increase your net value. This prevents surprise tax bills from reducing your settlement.

We work with financial specialists to accurately value our clients’ assets, including:

Business interests: Valuing a business interest can be complex, requiring the proficiency of a forensic accountant to determine the business’s true worth.
Family businesses: A family business can be a significant asset in a high net worth divorce, and its valuation can be complex, requiring the skills of a business appraiser.
QDROs, pensions and 401(k)s: These types of retirement accounts can be subject to division in a divorce, and it is essential to understand the tax implications and potential penalties associated with early withdrawal.
Real estate holdings: From primary residences to vacation homes and investment properties, determining the value of real estate assets is crucial in a high-asset divorce to ensure a fair division of marital property.
Stock portfolios: It can be complex to value stock portfolios, especially if they include restricted stock or stock options.
Vehicles, aircraft and boats: These types of assets can be subject to division in a divorce, and their value can fluctuate significantly.
Jewelry, artwork and high-end furnishings: These types of assets can be difficult to value, and their division can be contentious.
Cryptocurrency and digital assets: It can be challenging to value and divide cryptocurrency and digital assets, such as Bitcoin or NFTs, in a divorce.

We help you identify and value your assets. Then we use that information to build a division plan. We structure this plan to support your financial goals and long-term needs.

The Crucial Role Of Forensic Accounting

In a high net worth divorce, obtaining a perfectly transparent view of your marital estate is often a significant hurdle. Complex portfolios, international investments and closely held businesses require more than a standard financial review. At Powers Kerr & Rashidi, PLLC, our board certified family law attorneys frequently collaborate with a trusted network of experts, including accountants and CPAs, to ensure your financial future is comprehensively protected.

Our forensic accounting partners assist with several critical components of your case:

Asset tracing: Meticulously determining which funds are separate property and which belong to the community estate.
Uncovering hidden assets: Identifying offshore accounts, undisclosed investments or intentionally deflated business valuations.
Business valuation: Providing accurate, defensible appraisals of closely held businesses, professional practices or corporate partnerships.

Once these financial realities are clearly established, we apply our signature approach to your case: we are willing to be reasonable as long as reasonableness works, but we are fully equipped to litigate if your spouse aggressively attempts to obscure the truth. Since our firm was founded in 2004, we have used these financial insights to formulate common-sense, problem-solving strategies that yield optimal results for our clients.

Executive Compensation Breakdown

We proudly represent many clients within the thriving Austin tech scene, including IT professionals, executives and top 1% income earners. For these individuals in the Austin tech corridor, asset division extends far beyond real estate and standard retirement accounts. It frequently involves highly complex compensation packages that require meticulous, professional evaluation.

Our firm is highly experienced in dividing nuanced corporate benefits, including:

Restricted Stock Units (RSUs) : We analyze complex vesting schedules to determine what portion of the unvested stock is considered community property versus separate property.
Stock options: We assess both exercisable and unexercisable options, addressing the tax implications and the true market value of your corporate grants.
Deferred compensation: We trace future payouts and executive retirement plans to ensure you receive your fair share of deferred wealth.
Performance bonuses: We work to properly apportion annual or multiyear performance bonuses based on the specific timeline of your marriage and separation.

Custody And Support Issues In High-Asset Cases

In addition to arguments related to property division, high net worth divorces often involve disputes over spousal support and child support payments. In Texas, there are statutory maximums on both spousal support and child support obligations. Nevertheless, a skilled attorney can effectively negotiate even on these issues in order to maximize the benefits a client receives from their spouse’s support obligations.

In high-asset divorces, child support and spousal support calculations can be complex, particularly when there is a significant income disparity between spouses. Standard guidelines do not always fit high-asset families. Your children may expect private school or travel. They need support to maintain that lifestyle. Custody issues can also affect financial talks. We work to protect children from these arguments. The settlement must cover their needs now and later.

The courts consider various factors when determining support obligations, including:

Length of the marriage
Standard of living during the marriage
Age and health of each spouse
Income and earning potential of each spouse
Contributions of each spouse to the marriage, including homemaking and childcare
Impact of childcare on one spouse’s career or earning potential

When negotiating support obligations, it is essential to consider the unique financial circumstances of each spouse. For instance, securing a larger share of a spouse’s business or investment income may be necessary to support their lifestyle. Our attorneys are adept at negotiating and litigating spousal support and child support issues in high-asset divorces, and we are committed to protecting our clients’ financial interests.

Marital Debt And Hidden Assets: Critical Aspects Of High-Asset Divorces

In addition to assets, marital debt can also be subject to division in a divorce. Marital debt includes all debts incurred during the marriage, such as credit card debt, mortgages and car loans. Our attorneys work with financial professionals to accurately assess marital debt and negotiate a fair division of debt.

Unfortunately, some spouses may attempt to hide assets or incur debt without their partner’s knowledge. This can include transferring assets to a third party, creating shell companies or concealing financial accounts. This process involves a deep review of tax returns and bank statements. We check credit card histories to find errors. We also look for red flags. Income might drop suddenly. Money might go to unknown people. The court might delay bonuses until the divorce is over. Our attorneys have experience uncovering hidden assets and securing temporary restraining orders (TROs) to prevent further dissipation of assets.

Can You Legally Sell Assets Before Or During A Texas Divorce?

It is common to want to liquidate property during a separation to fund your transition into a new living arrangement or to streamline your estate. Because of this, clients frequently ask us if it is legally permissible to sell assets before or during a pending divorce in Texas. This is a highly emotional process, and because Texas is a community property state, doing so requires careful legal navigation.

When considering the sale of marital assets, keep the following in mind:

Mutual agreement: You and your spouse must generally both agree to and sign off on the sale of community property, such as real estate or joint investment accounts.
Temporary orders: Once a divorce is formally filed, temporary standing orders often go into effect, prohibiting the unilateral sale, transfe, or dissipation of marital assets without court approval.
Strategic liquidation: If both parties cooperate, selling assets early can provide necessary liquid capital and significantly simplify the overall property division process.

Because all three of our attorneys are also skilled mediators, we excel at facilitating the mutual agreements necessary to sell assets smoothly. We apply our depth of experience to these emotional hurdles, ensuring that any premature liquidation is legally and strategically sound and serves your long-term financial interests.

Contact An Experienced High Net Worth Divorce Lawyer In Austin

When your divorce involves assets of significant value, you cannot afford to entrust your case to a lawyer who is not experienced and knowledgeable in resolving these types of cases. To learn more about how we handle high-asset divorces and how we can help you, contact us online or call 512-593-7560 to schedule a consultation at our Austin office.