Like most spouses in Texas, when you said, “I do,” you expected your marriage to last a lifetime. You looked forward to making memories and building your fortune with the love of your life. When it became clear your fortune was great, but your relationship wasn’t, you decided to file for divorce, which immediately caused you to worry about property division proceedings. A high-asset divorce may be complex, but it doesn’t have to be overly stressful, especially if you know how to protect your interests.
Your house may be one of the most valuable assets you own. One of the first decisions to make in a divorce is whether to keep or sell your house. There are several factors to consider, including whether you still owe a mortgage on the home. If so, you’ll want to consider what your proceeds might be after paying off the loan and the realtors take their cut. Another option might be to assume the mortgage, meaning that your lenders may allow you to remove your spouse’s name from the loan.
Retirement benefits are a central focus in a high-asset divorce
If you have invested in IRAs, it’s important to differentiate the value of a Roth account compared to a traditional IRA. These two types of retirement accounts are similar in many ways. However, a significant difference between them has to do with taxes, and money in a Roth account is essentially worth more than the same amount in a traditional account. This could have a tremendous effect on the valuation of your assets when you divorce.
Health insurance, college funds and more
In addition to real estate and retirement benefits, your divorce settlement may include many other types of assets as well. For example, if you have employer-provided health insurance, but your spouse doesn’t, then he or she may continue to receive coverage under your plan for several years following your divorce. If you have set up a college fund for your son or daughter, ownership of the fund is an asset in the divorce.
Update your plans after your divorce
To protect your interests in a high-asset Texas divorce, update your estate plan and any other account or policy that lists your spouse as a beneficiary. If you forget to update a plan, it can create a legal mess down the line, such as if you remarry but your ex is still your sole beneficiary. When you have a lot at stake in a divorce, take your time, make sure you understand the state’s community property guidelines and know where to seek support if legal complications arise.