According to the CDC, the divorce rate in Texas is going down, with about 1.4 people per thousand in 2021 compared with 5.5 people per thousand in 1990. However, with a current population of nearly 30 million, that impacts quite a few people. A high-asset divorce in Texas often involves complexities that regular divorces do not face. It entails dealing with multiple properties, businesses, stocks, retirement accounts and other significant assets.
As with any complex issue, a high-asset divorce can breed numerous misconceptions, leading to confusion and potentially negative outcomes. Dispelling these misconceptions and understanding the reality of high-asset divorces can aid individuals in navigating these situations more efficiently and effectively.
Misconception 1: More assets make the process easier
One common misconception is that having more assets makes the divorce process easier. But the reality is, the more assets involved, the more complex the divorce process becomes. It takes time to identify, value and divide various types of assets accurately.
Misconception 2: All assets are communal property
Another misconception is that all assets become communal property in a marriage. Texas is a community property state, but this does not mean all property is community property. Assets that either party acquired before the marriage or received as a gift or inheritance during the marriage usually remain separate property.
Misconception 3: Equal division of assets
People often assume that in a divorce, assets divide equally between the spouses. However, Texas law calls for a “just and right” division of assets, which does not necessarily mean an equal division. Many factors can influence this division, such as each spouse’s earning potential and who has primary custody of the children.
Misconception 4: High-asset divorces always go to court
Many people believe that high-asset divorces always end up in court. However, many such divorces get resolved outside of court through negotiation or mediation. These methods can offer a more private and potentially less contentious way to resolve disputes.
Misconception 5: High net-worth divorces place children’s interests second
In high-asset divorces, people often think that the children’s interests take a backseat to financial matters. However, Texas courts prioritize the best interests of the child in every divorce case, regardless of the assets involved.
With the correct information and a better understanding of the complexities associated with high-asset divorces, individuals can make informed decisions and work toward a fair and reasonable resolution.