I’ve been practicing in Texas for over 30 years and have handled countless family law matters involving estates of all sizes and pretty much every issue you can imagine. One thing that’s great about me is not only my experience but also my strong online reputation, with five stars on Google and Avvo.
What does “high net worth” mean? Is there a threshold or bar that defines high net worth divorce?
That’s really relative and depends a lot on where you live because it’s tied to standard and cost of living. High net worth in Beverly Hills is much different than in a small town. Typically, it’s about having excess wealth — not just being comfortable, but having plenty of extra funds to do what you want when you want. In terms of a number, it’s hard to say exactly because it’s relative, but generally, it might be a couple million dollars or more. In some parts of Texas, a couple million might not even buy you a house. Usually, people with their own businesses or high-level executives fall into this category.
Does high net worth divorce involve a variety of asset types?
Absolutely, it can. Sometimes it’s a business worth a lot, maybe some paid-off real estate, cars, boats, investments, and so forth. Other times, the assets may not be very diversified — it could all be tied up in a single business. But usually, there is some complexity involving different types of assets, which requires careful evaluation.
How does your role change when involved in a high net worth divorce?
It depends on the assets, but key parts are identifying and valuing all assets properly. We may need to bring in experts like business valuators who understand divorce context because valuing a business for divorce is different than a normal sale. For example, in divorce, we don’t assume things like non-compete agreements or seller stay-on conditions that might affect business value in a sale.
We might also involve forensic accountants or CPAs, especially if there are complex assets, retirement plans, or out-of-state or foreign assets. Sometimes, we need lawyers in other states or countries to help gather information.
Could you talk about the beginning of the process for dividing the marital estate fairly?
The first step is stabilizing the immediate situation — who stays in the house, visitation schedules, bills, etc. That’s often handled by a temporary order. Then, we build an inventory and appraisement of all assets — not every household item individually, but generally what the whole household is worth, plus detailed valuation of retirement plans, businesses, real estate, etWe send discovery requests to the other side to gather information, sometimes issue subpoenas if needed, and engage appraisers and experts early because that process can be slow. It’s important to start early to have everything ready for court scheduling deadlines.
What about inherited property in high net worth divorce? How is that treated?
In Texas, inheritance left to one spouse is generally separate property and not subject to division. If inherited by both, then it becomes community property, but that’s rare. The tricky part is if inherited property is commingled with community assets, making it harder to trace. Texas law says community funds are spent first, so if the inheritance is mixed with marital funds, it can be difficult to prove it’s still separate property. We often bring in forensic accountants to trace assets. Also, sometimes postnuptial agreements come into play if inheritance is significant.
Are there tax implications in dividing high net worth assets?
Yes, but generally transfers in divorce have no immediate tax effect if done properly — for example, transferring a 401(k) between spouses via a QDRO (Qualified Domestic Relations Order). However, the basis and eventual tax consequences follow the asset, so if you get an asset with a low basis but high market value, you inherit the potential tax liability when you sell. We work with accountants to understand the post-divorce tax impacts and plan accordingly.
Why is it important to have an experienced attorney in high net worth divorce?
Experience matters because you need to know where to look, what questions to ask, and when to bring in experts. Many lawyers miss valuable assets like stock options or restricted stock units. Also, reading financial statements, tax returns, and managing subpoenas requires skill. The ability to prepare a clear inventory and appraisement that a judge or mediator can understand is critical.
How do you handle stock options in divorce?
Stock options and restricted stock units (RSUs) can be tricky because they often vest over time. Texas law treats compensation earned during marriage as community property. So if someone gets RSUs with a five-year vesting schedule and they were married for three years during that time, roughly 60% might be community property. Courts may order the employee spouse to act as a constructive trustee and transfer the appropriate portion to the other spouse once vested.
Besides asset division, what other considerations are there in high net worth divorce?
Spousal maintenance (alimony) and child custody/support. In Texas, spousal maintenance is hard to qualify for in high net worth cases — the law is meant for spouses who cannot meet minimum reasonable needs, often in low-income divorces. Child support is based on income percentages up to a cap, so high income doesn’t always mean more child support. The court can deviate from guidelines for special needs, but that’s rare.
What sets you apart as an attorney in handling high net worth divorces?
I have over 30 years of experience with family law and civil litigation, which helps in court preparation and navigating complex issues. I’m thorough, leave no stone unturned, make sure clients understand the value of assets, and prepare every case for trial from day one — which often leads to better settlements. My strong team supports me to ensure we get the best results for our clients.
