High Asset Divorces: Divorce Litigation
High Assets Divorces in Texas can be painstaking and involve substantial time and money to properly litigate an individual’s case.
- Original Petition and Temporary Orders
Single most important event for leverage is who files their Divorce Petition first. If you file first you are a Petitioner. A Petitioner receives a crucial benefit in litigation. A petitioner is afforded the opportunity to talk first and last in litigation, sets the tempo of the divorce, and creates the narrative of the litigation. Being a Petitioner is invaluable, thus if you have decided to file you should look to file first.
Temporary Orders are usually, absent emergency relief, the first hearing the Court will have in the case. At temporary orders the Judge will likely attempt to place a Band-Aid on all assets to insure there is not wasting of assets, custody and access of the children are determined, and payments remain the same of any separate or community property assets. Temporary spousal maintenance, exclusive use of property, and injunctions are granted at this hearing. With High Assets this hearing is pivotal in determining how litigation will continue in the future. Every Court is different but multiple additional temporary order may be filed or clarification motions.
2. Discovery Phase and Experts
The discovery phase may be cumbersome and painful. Discovery consists of multiple written questions. These include production questions (asking for documentation), interrogatories (questions require a written notarized response), admission (admit or deny questions), depositions (typically 6 hour cross examination in front of court reporter at an attorney’s office), and inventory and appraisal (sworn list of assets and values of each asset). These process are usually expensive but necessary to prove the amount of the marital estate and the characterization of property.
Experts are also employed at this stage. They are costly but necessary to prove tracing, value of fraud, or overall value of the business. These issue are likely contested, thus the battle of experts continue until the final hearing.
3. Depositions
A deposition is a formal question-and-answer session used in divorce cases to gather information under oath before trial. It typically takes place in a lawyer’s office, where one spouse (the deponent) answers questions from the opposing attorney while a court reporter records everything. The purpose of a deposition is to uncover facts, clarify disputes, and assess how a witness may testify in court. While it doesn’t happen in a courtroom, the statements made during a deposition carry legal weight and can be used as evidence later.
In high-asset divorces, depositions become even more critical because of the complex financial issues involved. Attorneys may ask detailed questions about business ownership, real estate holdings, investments, hidden assets, trusts, and even potential misuse of marital funds. If one spouse suspects the other of concealing wealth, forensic accountants or financial experts may analyze records and testify about discrepancies. The opposing attorney may also scrutinize spending habits, tax returns, and financial disclosures to ensure full transparency.
Because high-asset divorces often involve prenuptial agreements, inheritance disputes, or business valuations, preparation is crucial. A well-prepared spouse will work closely with their attorney to review financial documents and anticipate tough questions. While depositions can feel intense, remaining truthful, composed, and strategic can help protect one’s financial interests and ensure a fair resolution.
4. Mediation
Meditation may occur in the middle or toward the end of the litigation process. A good mediator may range from $2,000.00 to $3,500.00 per side. The mediation process can be difficult and last from a half to more than a full day. Some mediations go for 14 to 15 hours to obtain settlement. Though this is expensive it is still less costly than going to final trial and many outcomes may be obtain by agreement to which a Judge cannot order. The flexibility of mediation makes this process less painful and costly than attending final trial.
5. Final Trial before the Court or Jury
Final trial may be performed solely by a Judge or a Jury of 12 peers. Only 10 of 12 Jury members are needed to find in favor of either party. A Jury trial is more expensive, takes more time to prepare, and may be more risky depending on the County. A trial before the Judge is cheaper and may simplify many matters. It is important to know for every 1 hour in Court it takes more or less 4 hours to prepare.
A jury trial with a minimum of 2 experts and multiple other fact witness should take anywhere from 4 to 7 days. A trial before the Judge for a similar case may take 2-4 days, depending how the judge runs the Court.
There are many trials and tribulations an individual will have to surpass in the Court system if they are getting a divorce and the marriage contained with high assets. It will likely be costly, painful, but necessary. Many other factors such as summary judgements or motions to exclude experts, witnesses, or exhibits may increase fees. It is important to be confident with your attorney and find a firm that has experience with higher assets cases to ensure the flow and strategy of the litigation fulfills your goals.
High Asset Divorce Attorneys in Dallas Texas
Nacol Law Firm P.C.
(972) 690-3333
Going Through a Texas Divorce with a Special Needs Child
Going through a divorce can be a difficult time for all family members, including the children. The stress of dealing with a child that has a serious illness or difficulty prior to the initiation of a divorce may accelerate during the divorce process. We call such a child the “Special Needs Child”. This child has apparent or diagnosed emotional/medical problems.
Special Needs children are seriously impacted by the decisions made during a divorce. Many times the child becomes more vulnerable not knowing with is happening but very afraid of losing mom or dad forever and causing additional emotional and behavioral problems at home. It is important for parties to determine how meaningful regular visitation will be accomplished and which parent will have the right to make major decisions on how to address the child’s emotional and medical needs. During a divorce, most parents have difficulty agreeing on issues, especially issues related to the problems associated with a “special needs” child.
I. Child with Emotional Issues:
Children will always experience some level of negative emotions during the divorce process, even in the best circumstances. When a child has a mental illness or emotional problem, how visitation periods are managed, who has the authority to make a decision on medical treatment and therapy and how such decisions will be followed and enforced in each parent’s household will greatly affect the success or failure of the final decree as it pertains to the child. It is very important to have an order that is flexible and meets the child’s changing needs, yet remains enforceable should action need to be taken due to a parent’s failure to meet the needs or comply with the court’s order.
Three of the most reported emotional and behavioral issues involving children are Attention Deficit Hyperactivity Disorder (ADHD) Behavioral or Conduct Disorders, Oppositional Defiant Disorder (ODD), and chemical addictions.
2. Special Medical Needs
When a child has significant medical health problems or disabilities parents may have very different opinions on who should be the decision maker regarding doctors, medications and regimens for a particular situation. This may be compounded by the emotions and breakdown in the marital relationship often caused by the stress and differing opinions of the parents on the care of the child. The Court must help to balance the needs and rights of the parents so that each has a voice in their child’s treatment decisions. It is also important that the parties along with the Court work for a consistent treatment protocol to meet the child’s medical needs and best interests.
The real battleground in Texas custody cases becomes the allocation of rights and duties between the parties. This is exacerbated when the child involved has emotional or medical needs. Other factors that may compound issues are 1) other children involved and 2) whether they also have special needs. Major problems occur when there are differing views between the parents on how to best treat the problem or a lack of consensus among medical and mental health professionals as to the appropriate protocol for treatment and uncertainty among family courts as to which protocol
to “impose” upon the family.
Texas Courts vary greatly on how each allocates rights and duties, even in joint managing conservatorship situations. In the event the parties cannot agree on the allocation of rights pertaining to educational and medical decisions the courts must award custody based on the principle of what is the best interest of the child. The Court will consider many factors in developing a parenting plan including the development status of the child, the child’s temperament, and each child’s specific needs.
To make a meaningful decision on the care of the child, the court will need evidence of the following:
• Which parent is the most involved in the decision making as pertains to the relevant issue?
• What are the competing theories of how to best treat the child?
• Current opinions from the child’s physician and /or therapist.
• What is the generally accepted treatment for the specific condition?
• What is the likelihood of each parent following the protocol selected by the court?
• How successful has the treatment been in the past?
• What are the attitudes of the parents in relation to considering alternative methods if the current situation doesn’t work?
• Which parent has shown a proven effort at recognizing the child’s needs and working to address them?
The selection of a reputable expert in the particular field in which the child is affected is paramount to a true evaluation of the situation. Not all doctors and therapists are created equal and the expert must be a specialist in working with the child’s specific problem.
After the divorce is concluded, raising a special needs child requires a high degree of collaboration between both parents. This child feels very afraid and doesn’t have to be put in the middle of a parental alienation feud which could cause long term mental and physical scarring for both the child and the parents.
Parents, think about your child! Your child didn’t ask for a divorce but they will have to live with the consequences, good or bad, that your decisions leave them!
High Asset Divorces: Jury Trial on Assets
When two individuals have substantial assets and are resolved to file a Divorce, it is important to understand what a jury can and cannot determine regarding the assets or fault in the marriage. The strategy to request a jury trial or trial before a Judge can be complicated and vary greatly depending on the circumstances of the case.
- What can a Jury determine regarding marital property and fault between the parties.
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- A jury trial may be requested by either party when a divorce is filed. Tex. Fam. Code §6.703
- If requested, a jury alone decides whether contested assets/marital property will be characterized as either (1) community or (2) separate. In re Marriage of Moore, 890 S.W.2d 821, 834 n.7; 838 (Tex. App.–Amarillo 1994, no writ); Archambault v. Archambault, 763 S.W.2d 50, 51 (Tex. App.–Beaumont 1988, no writ).
- A jury may decide the issue of fault in the marriage i.e. (adultery, cruelty, etc.)
- A jury may decide disputed issues regarding spousal maintenance such as: (1) eligibility for spousal maintenance, (2) dollar amount needed to provide spouse with minimum reasonable needs, and (3) the amount of time reasonably necessary for a spouse to become self-supporting.
- A jury may decide reasonable and necessary attorney’s fees for either side.
- A jury fee must be paid for following a request made by the court’s local rules.
2. What can a Court determine regarding marital property and fault between parties?
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- A Court/Judge determines the just and right division of the martial estate when distributing or dividing the martial property.
- The Court/Judge take the Jury’s findings of fault and characterization of assets (separate or community) then determines what a just and right division of the property is proper in each specific case.
3. Things to consider regarding presenting evidence to Judge and Jury.
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- Expert witnesses likely will be discussing whether property is separate or community (forensic accountants, business evaluators, title searches, appraisers, etc.).
- The jury determination of 10 out of 12 jurors is needed to determine: (1) the character of the property (separate or community), (2) find fault in the marriage, (3) award reasonable and necessary attorneys fees to either side.
- Costs and expenses for a jury trial are substantially more than a trial before a judge.
- A jury may make advisory opinions as well, that are not required to be followed by a judge, such as fraud on the community estate, distribution percentages of community property, and others.
There are many reasons during a high asset divorce a party may request a jury. Perhaps the Judge is unfavorable to an individual; perhaps the facts supporting separate property are not will be more favorable to a group of peers than a judge; perhaps adultery is a serious issue and may lead to a higher award of attorney’s fees and spousal support in the hands of a jury. It should be noted that if a jury is to determine a plethora of issues to make an educated determination to whether property is separate or community property then there will require many experts and simplification of the issues should be paramount.
Dallas High Asset Divorce Attorneys
Nacol Law Firm P.C.
(972) 690-3333
Getting a Divorce from Your Addict Spouse
Has the time come to seriously start thinking about divorcing your Addict Spouse? After much heartbreaking soul searching has the time to break the downhill addictive spiral come for you and your family? Have you decided to stop the instability and damaging personal assaults the addictive spouse and parent has inflicted on the entire family?
Here are some possible questions you may ask yourself before making the final decision of divorcing your Addict Spouse:
- Have you acknowledged to yourself that your spouse is an addict?
- Have you acknowledged to your spouse that he/she is an addict?
- Has your life and that of your family become chaotic and unstable as a result of living with an addict?
- Have you gotten help for yourself and your spouse from an addiction expert?
- Have you attended counseling with your spouse and a knowledgeable addiction therapist?
- Have you or your family experienced serious negative consequences as a result of your spouse’s addiction?
- Have you considered or tried an intervention?
- Have you told your addict spouse that you are contemplating divorce unless he/she stops using?
- Are you now ready to leave the marriage and stop the pain?
You do not have to live in this current situation. Are you, as the non-addictive spouse, already the enabler in this relationship? Many times when the addictive spouse does seek professional help it is already too late for the marriage to survive.
If you have a family, addictive reality is very destructive to you and all family members involved. Most non-addictive family members feel very helpless in stopping the family unit from being destroyed or addressing the viability of the marriage.
(credit : National Institute on Chemical Dependency: http://nicd.inspirehealth.org/)
High Asset Divorces: Business Evaluations
A High Asset Divorce in Texas can be a complex process, especially when high-value assets like Corporations, Limited Liability Companies, Partnerships or other Business Entity are involved. In Texas, which follows community property laws, determining the value of a business is a crucial step in ensuring a fair division of assets. This process, known as business valuation, helps establish the worth of a business for equitable distribution between spouses.
What Is a Business Valuation?
A business valuation is a financial analysis that determines the economic value of a business. This is especially important in a divorce when one or both spouses own a business, and its worth must be assessed to divide assets fairly. Valuation experts use financial records, market trends, and various methodologies to establish a business’s value.
When Is Business Valuation Necessary?
Business valuation is necessary in a Texas divorce when:
- The business is classified as community property (owned by both spouses, even if one spouse primarily operates it).
- One spouse seeks to retain ownership and must compensate the other for their share.
- The business needs to be sold, and its value must be determined for proper distribution.
- There are disputes over the true worth of the business.
Who Is Qualified to Conduct a Business Evaluation?
In a high asset divorce, a business valuation should be conducted by a qualified financial expert with experience in divorce-related valuations. The following professionals are typically qualified:
- Forensic Accountants
- Specializes in tracing assets and analyzing financial records.
- Can identify hidden assets or income.
- Certified Public Accountants (CPAs) with a Business Valuation Credential
- Look for CPAs with additional credentials such as:
- Accredited in Business Valuation (ABV) – issued by the AICPA
- Certified Valuation Analyst (CVA) – issued by NACVA
- Certified Business Appraiser (CBA) – issued by the IBA
- Business Appraisers
- Specialize in evaluating privately held businesses.
- May hold designations such as ASA (Accredited Senior Appraiser) from the American Society of Appraisers.
- Economists or Financial Analysts
In cases involving complex financial structures, economists with experience in valuation can assess the long-term economic impact.
- Industry-Specific Experts
If the business is in a specialized industry (e.g., medical practice, law firm, tech startup), an industry expert may be necessary to assess market value.
The cost of a business valuation in a high-asset divorce in Texas can vary significantly based on factors like business complexity, expert credentials, and whether litigation support is required. Here’s a general breakdown of what you can expect:
Basic Business Valuation (Small, Simple Business)
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- $5,000.00 – $15,000.00
- Typically used for small businesses with straightforward financials, such as a sole proprietorship or single-member LLC.
Standard Business Valuation (Medium-Sized Business)
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- $15,000.00 – $30,000.00
- Includes businesses with multiple revenue streams, moderate assets, or industry-specific complexities.
Comprehensive Business Valuation (High-Asset, Complex Businesses)
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- $30,000.00 – $100,000.00+
- Necessary for businesses with complex financial structures, partnerships, intellectual property, or hidden assets.
- Includes forensic accounting, expert witness testimony, and detailed reports for court.
Additional Costs to Consider:
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- Forensic Accounting: $250.00 – $600.00 per hour
- Expert Testimony: $400.00 – $1,000.00 per hour (if the case goes to trial)
- Document Review & Discovery: Additional $5,000.00 – $20,000.00+ depending on the volume of records
If the divorce is contested and involves disputes over business valuation, costs can escalate due to prolonged litigation and expert testimony requirements.
Key Methods of Business Valuation
Experts use different approaches to assess a business’s value, including:
- Asset-Based Approach
This method calculates the value of a business by assessing its total assets minus liabilities. It is particularly useful for companies with significant tangible assets, such as manufacturing or real estate businesses.
- Income-Based Approach
This approach evaluates the business’s earning potential by analyzing past income, projected future earnings, and financial statements. Two common methods within this approach are:
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- Capitalization of Earnings: Used when a business has stable, predictable income.
- Discounted Cash Flow (DCF): Estimates future cash flows and discounts them to their present value.
- Market-Based Approach
This method determines the business’s value by comparing it to similar businesses that have recently been sold. It is often used when industry sales data is available and reliable.
Factors That Impact Business Valuation
Several factors can influence a business’s valuation, including:
- Revenue and profitability: A highly profitable business is usually valued higher.
- Market trends: Economic conditions and industry growth affect valuation.
- Debt and liabilities: More liabilities reduce the overall value.
- Ownership structure: Whether the business is solely or jointly owned impacts valuation.
- Goodwill and brand reputation: The business’s reputation and customer loyalty contribute to its worth.
The Role of a Business Valuation Expert
A certified business appraiser or forensic accountant is typically hired to conduct the valuation. Their role includes:
- Reviewing financial documents (tax returns, profit and loss statements, balance sheets, etc.).
- Investigating potential hidden assets or underreported income.
- Applying appropriate valuation methods.
- Providing a detailed report and potentially testifying in court.
How Business Valuation Affects Property Division
Once the valuation is complete, the business can be handled in a few ways:
- One spouse buys out the other: The spouse who keeps the business compensates the other for their share.
- Selling the business: The proceeds are divided between both spouses.
- Co-ownership: In rare cases, ex-spouses may agree to continue running the business together.
Challenges in Business Valuation
Divorces involving business assets often face complications such as:
- Disagreements on valuation methods.
- Hidden income or financial manipulation.
- Business debts impacting valuation.
- Determining community vs. separate property (whether the business was started before or during the marriage)
In a Texas divorce, business valuation is essential for an equitable division of assets. Hiring an experienced valuation expert ensures that the process is fair and transparent, protecting the financial interests of both parties. Whether you’re a business owner or a spouse seeking your fair share, understanding how business valuation works can help you navigate the divorce process more effectively.
If you’re going through a divorce involving a business, consulting with a Texas divorce attorney and valuation expert is crucial for ensuring a just outcome.
Dallas High Asset Divorce Attorneys
Nacol Law Firm P.C.
(972) 690-3333
NACOL LAW FIRM P.C.
8144 Walnut Hill Lane
Suite 1190
Dallas, Texas 75231
972-690-3333
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Friday, 8:30am – 5pm
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization
