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Financial Planning crucial in event of a high asset divorce

Whether a couple is exorbitantly wealthy or is simply living on love, the possibility of divorce cuts through all levels of the financial spectrum. As a result, it is important for husbands and wives to educate themselves on the financial basics of a divorce, if only to give themselves peace of mind during their marriage. In Texas, most couples want to retain their separate property after splitting from a spouse, but they can't do this without extensive organization.

Financial know-how, of course, becomes especially significant during a high asset divorce, when one or both spouses is legally involved with a considerable amount of property, money, investments, business, or other money-related ventures. With money often being one of the primary reasons couples fight in the first place, a couple with a lot of financial entanglements may find itself prone to disagreement before, during, or after their marriage.

One of the first things a wife or husband can do is ensure their own financial record-keeping system is in proper working order. This means separate files for separate accounts, copies of tax returns and income documentation, as well as paperwork showing debts owed and repaid. Essentially, in case of a high asset divorce, spouses should be able to substantiate any claims to income and obligations. Spouses should not be able to claim they make less money than they really do, so a record of employment history is also helpful to keep on hand.

Income can come from passive means as well, including investments or property sales such as real estate, which can frequently be considered separate property that a divorcing spouse likely wants to keep. In a divorce, proving these sources of passive income is as crucial as demonstrating money made from one's occupation. It's also beneficial to value assets properly and keep the paperwork for those appraisals in a safe place. Often, a Texas family law attorney will hold onto such documents for their clients for safekeeping.

Source: The Palm Beach Post, "Protect yourself with divorce planning." Robin Roshkind, Jan. 25, 2013

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Attorney Christine K. Lincoln

Christine K. Lincoln offers sound counsel and legal services to protect clients and their families facing divorce and other family disputes.

She will take the time to understand your individual needs and develop a comprehensive solution to protect your rights and interests.

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