Beginning a divorce can feel like getting a drink from a fire hydrant. Too much, too fast! The mind can begin to spin like a west Texas tornado with all the decisions to make from pets to children. In times of high emotion, the best strategy is to simplify the to-do list by focusing on the finances. In a high-asset divorce, this is even more important, as there is more at stake with Texas marital property division laws.
Steps to getting your finances organized:
- Lists your assets: There are a variety of assets in a high-asset divorce. It is important to make a list of all properties, investments, mineral rights, intellectual property, cryptocurrencies, art collections, car collections, rental properties, timeshare deeds, businesses, savings, etc.
- List all debts: When thinking about what assets are owned, it is equally important to consider what is owed. These could include mortgages, loans, liens, fines, etc.
- Marital property versus private property: Sometimes heirlooms are overlooked and mistaken as marital property. It is not. It is advisable to note what was received as an inheritance, regardless of before or during the marriage. Heirlooms 100% belong to the rightful heir and are not community property in Texas.
- Budget: Calculate the cost of divorce and adequate legal representation. By staying organized and hopefully reducing conflict, the process can be made a lot smoother by sticking to a divorce budget.
The organization takes a lot of stress out of divorce by making the picture clearer as to what is owned and owed. It is impossible to tackle every issue that arises from pets to property. It is wise to start with organizing finances, and partnering with professional legal counsel that is experienced in divorce planning and family law, especially concerning high-net-worth divorces in Texas.