The longer couples are married, the more assets they usually accrue, and older couples may have to negotiate splitting a variety of assets that can include not only the family home but also investment properties and accounts. Some Texas couples will face this situation if their marriage ends, but there are ways they can protect their investments and interests.
In a high-net worth divorce, it is important for each spouse to walk into negotiations with a clear idea about their assets, investments and the financial state of the couple. They should be clear about who can make withdrawals and other decisions regarding the accounts. Access to these accounts is important as the ex-spouses begin to assess their financial health and plan for the future. The division of these accounts, however, will differ depending on the type of account, and some will be liable to heavy taxes and other penalties if dissolved or split. During this process, the ex-spouses should also be clear about the taxes and penalties they will incur as these need to be taken into consideration when negotiating the division of assets. The same logic applies to dividing retirement accounts since 401(k) and 403(k) accounts are handled differently than IRAs and will require different documentation to split them.
After the divorce is also an ideal time to update the beneficiaries in each person’s accounts. Each person might wish to remove their ex-spouse from their beneficiary list and perhaps add new beneficiaries as well. This can prevent complications later on.
The divorce process can be very messy, but consulting a lawyer with family law experience might make the process easier to understand. A lawyer may explain the laws in the state that affect divorce and the options each spouse has when it comes to the division of property. The lawyer may also provide representation when the time comes to negotiate a settlement.