If you are going to be ending your marriage, there are many different questions that you might have, such as how splitting up with your spouse will affect your kids or what will happen to the family home. However, bringing your marriage to an end may have a wide range of financial effects on your life, whether you need to pay spousal support or child support, are worried about how the courts will split up marital property, or are worried about how relocation will affect your ability to work. Moreover, you could have concerns about your estate and it is vital to understand the importance of asset protection during the divorce process.
People frequently think of many challenges when divorce comes up, such as how the custody of children will be arranged, who will receive certain types of marital property, and the amount of child support or spousal support that will need to be paid. However, it is important to bear in mind that ending a marriage can affect couples in other ways. For example, you may find that splitting up with your spouse has affected your career. It is essential to do what you can to prevent your divorce from creating other challenges in life and be prepared for various issues you may face.
From allegations of infidelity to a couple's relationship simply not working anymore, there are many reasons people file for divorce. In Houston, and other parts of Texas, many people continue to find themselves in this position. If you are preparing for divorce, or are going through the process right now, knowing how many other people are in the same situation as you may make you feel as if you are not alone. Moreover, each divorce case has unique details and the end of a marriage can be especially challenging for certain people, such as those who have a high net worth.
Divorce proceedings in Texas are often complicated by financial concerns. This complexity is amplified in situations where either an individual party or the couple holds high value in pensions, real estate, property interests or other diverse financial products. One notable example is of such was the divorce of Expos owner Jim Crane.
Ask a person in Texas under the age of 40 about their pension plans and you might get a quizzical look. Pensions are something their parents or grandparents have. For those in younger generations, retirement planning usually means socking something away in an Individual Retirement Account or a 401(k).
Decades of a couple being together cannot necessarily be interpreted as wedded bliss. In Texas and elsewhere, the demographics of divorce are constantly changing. What might be thought of as typical; a marriage of several years ending when the two individuals realize things have changed; doesn't always apply. As we noted in one recent article, knots that couples tied even 40 or 50 years ago are coming undone.
By this time, the so-called Panama Papers story may be something fading into the background of current events for many people in Houston. So much has happened since the story broke in April. It would take some pretty big news to grab headlines away from mass shootings and the presidential election campaign.
Texas individuals who have gone through divorces will likely agree that dividing assets in a divorce is never an easy process. Property division can be even more complex in a case of a high net worth divorce. Divorces after many years of marriage -- such as that of Sharon and Ozzy Osbourne -- and accumulation of assets that have become intertwined can complicate the process even more.
We’ve been looking in recent posts at steps that can be taken to protect assets from divorce by couples who, for one reason or another, do not have a prenuptial agreement. Last time, we spoke in particular about the importance of avoiding commingling of separate property.