Knowing the high-net-worth divorce process & timeline in Austin before your divorce can alleviate stress and allow you to make better strategic choices. Austin’s high-net-worth divorce laws apply equally to every individual, regardless of income. However, high-asset divorce cases tend to proceed at their own pace, with additional financial, legal, and logistical complexities.
If you’re a high-net-worth individual going through a divorce, learn what to expect at each stage of a divorce case. Preparation can help you avoid surprises and costly missteps.
What Makes a Divorce High-Net-Worth?
Divorce attorneys typically consider a case high-net-worth when significant assets or income are at stake. Marital estates in Austin frequently involve:
- Businesses ventures
- Stocks
- Real estate and private property
- Retirement accounts
- Investments
- Multiple sources of income
While Austin has no separate definition or statutes for high-net-worth divorce, divorcing Texas couples still must navigate the same Texas Family Code requirements as everyone else. Complexities regarding valuation, discovery, and negotiation typically extend the timeline.
As evidenced by the fact that around 16% of American couples left their marriage during the first five years, and approximately 22 percent did so after 25 years or more, divorce affects couples at different stages of life. The fact that nearly one-third of Americans report that their first marriage ended in divorce shows how common divorce has become over time, with many of them being high-asset divorces.
Pre-Filing and Preparation
The divorce timeline effectively begins before you file a petition. Time invested in creating a thoughtful strategy pays dividends later in the case. People who prepare thoroughly before initiating divorce proceedings are more likely to achieve better outcomes. Preparation may include:
- Organizing financial records
- Understanding strengths/weaknesses of community vs separate property
- Strategizing around bonuses, vesting schedules, or business cycles
- Understanding tax implications
High-net-worth individuals should allow several weeks to several months for adequate preparation.
Filing and Residency
To file for divorce in Austin, Texas, one spouse must be a resident of the state and county. Specifically, they must have been a Texas resident for at least 6 months and a county resident for at least 90 days.
Most Austin high asset divorce cases are filed in the Travis County Civil and Family Courts Facility at 1700 Guadalupe Street, Austin, TX 78701. Filing your petition officially starts the clock and the 60-day waiting period in Texas.
Hire a High Net Worth Divorce Lawyer
You should hire a high-net-worth divorce lawyer as soon as you know you want to file for divorce. When you hire a high-net-worth divorce attorney, you gain an advocate who understands Texas divorce law and how it applies to your unique concerns about asset protection, taxes, and future planning. This experience and knowledge are vital in Austin divorce cases with shared businesses, multiple real estate holdings, or high-earning spouses.
Temporary Orders
Temporary orders hearings are standard in Austin high-net-worth divorce cases. Temporary orders address issues needing short-term relief, including:
- Use of the marital home
- Temporary parenting time and possession schedules
- Payment of marital expenses/debts
- Temporary spousal support or child support
Judges are often hesitant to upend the status quo. As a result, temporary orders can heavily influence the outcome of the case. Temporary hearings are typically the first time high-asset divorcing couples spend significant time in court.
Discovery and Valuation of Assets
Discovery takes the longest in high-net-worth divorce cases. All financial documents must be collected to identify and value marital assets. Discovery may take several months or longer if disclosure or valuation is contested.
Negotiation and Mediation
Many high-net-worth divorces are settled outside of trial through negotiation or mediation. In fact, Travis County requires mediation before setting a trial date. Mediation allows the couple to privately resolve their conflicts, have more control over the outcome, and reduce the risk of having their privacy violated.
Mediation in Austin high-asset divorce cases will not be a one-day session. Complex financial issues and parenting schedules typically require multiple mediation sessions.
Trial and Settlement
Once negotiations are exhausted, your divorce will begin prepping for trial. Few high-net-worth divorce cases are resolved on the first day of trial. Preparing for trial is expensive and time-consuming. Due to heavy dockets, Austin courts often schedule trials months in advance.
FAQs
How Long Does a Divorce Take in Austin, Texas?
Texas law mandates that there is at least a 60-day waiting period before an Austin divorce can become final. That is sufficient time in uncontested cases. Complex/high-net-worth or contested cases often take from six months to well over a year. The duration of divorce proceedings depends on the complexity of the assets, the negotiation process, discovery procedures, and Travis County court schedules.
How Much Is a High Net Worth Divorce?
Legal fees in a high-net-worth divorce in Austin can range from tens of thousands of dollars to well over six figures. The higher end of the spectrum includes business valuations, real estate portfolios, forensic accounting, and extended litigation. One way to keep your fees down is to hire skilled counsel as soon as possible. They can help you protect your assets and make negotiations as efficient as possible.
What Assets Are Untouchable in Divorce?
Texas law protects separate property in divorce. Separate property consists of anything owned prior to marriage, inheritance, individual gifts, and, in some cases, personal injury awards. It is imperative to show proof that your property is separate. Failure to properly trace separate property can lead to it being included in divorce proceedings.
Who Loses More Financially in a Divorce?
Financial divorce settlements can result in one party experiencing more financial loss than the other based upon earning capacity, division of assets and liabilities, and ongoing divorce obligations. In high net worth divorces, the higher income-earning spouse may lose more net assets up front through equitable distribution of property and/or support payments.
However, the lower-income spouse may face longer-term financial losses due to downsizing and a lack of financial independence.
Contact the Law Office of Ben Carrasco, PLLC
If you are going through a high-asset divorce, the Law Office of Ben Carrasco, PLLC can help you in the legal process. Contact us today for more information.
