High Net Worth Divorce Does Not Have to Be High Stress
December 8, 2016 Posted in Divorce Share
Significant conflict within a relationship leads to just about every divorce and that conflict naturally flows through the actual divorce process as well. Even after many years of marriage, the underlying issues can range from anything from general incompatibility to financial concerns, regardless of the degree of wealth. However, agreeing to a divorce settlement is often more challenging when complex financial issues come into play.
Most Dallas high net worth divorce lawyers would agree that the divorce process can be significantly less stressful when married couples take a more businesslike approach to their assets when they acquire them.
Ongoing Financial Discussions Should Be Part of Every Marriage
No couples walk to the altar with an eye toward divorce, but they often do so without having any meaningful financial discussions. Done properly, ongoing communication about the financial end of any relationship before and during marriage can strengthen bonds by making life easier and more predictable.
If divorce seems inevitable, however, the following tools can help ensure fairness and less stress throughout the process:
- Premarital or post marital agreements: A legal agreement executed prior to (or even during) a marriage identifies each party's rights if the relationship ends. However, it is not just about divorce. The Texas Uniform Premarital Agreement Act sets forth certain rules that apply in the event of divorce, death of a spouse, or other events defined in the agreement. These documents do not apply to issues pertaining to the children. They only affect the distribution and ownership of marital assets.
- Contractual agreements for major financial issues: Couples who enter into major financial changes should consider the effects to the marriage. Perhaps the most common example involves the formation of a family business during a marriage. A marital relationship should not prevent the participants from addressing the legalities from a purely business point of view. Just as business partners must define the requirements for dissolving the partnership, married business partners must do the same thing.
- Negotiated settlement agreements: Both parties of divorce generally fare better when they negotiate settlements rather than leaving the decisions in the hands of a judge during a stressful trial. While negotiating a settlement may seem impossible in times of personal conflict, divorce attorneys have the skills and experience to help both parties develop the cooperative spirit needed to reach agreement on many tough issues.
- Choosing an attorney with a financial background: High net worth divorce requires an attorney with extensive knowledge of complex financial issues. In addition to having the ability to accurately assess the financial holdings of each party, a lawyer must have the financial understanding needed to help arrive at equitable solutions for both parties.
Greater Financial Organization Creates Less Stress
According to one recent survey, about 42 percent of participants stated that they did not discuss finances prior to marriage. Considering that disagreements relating to financial issues are considered to be one of the greatest predictors of divorce, it is clear that couples should have a clear mutual understanding of their financial status and habits long before marriage. By carefully planning how to deal with all financial crossroads, many couples have lower stress levels in their marriages — and even during divorce.
Couples entering into high net worth divorce appreciate legal support from an attorney who has an impressive background in the complex world of the securities industry and significant experience helping couples avoid litigation whenever possible. Before heading for the courts, contact us to gain a clear view of all available options.