Houston High-Asset Divorce Attorney
For decades, the Law Thompson, P.C., law firm has aggressively and successfully defended its clients’ ownership of significant marital assets, financial holdings and property during high net worth divorces in Houston and beyond.
Our founder, attorney Travis Thompson, has compiled a substantial track record of success on behalf of executive and business owner clients in the Greater Houston area, including the Woodlands, Texas, and Montgomery County.
Travis Thompson’s 30+ years of experience benefit producers of wealth in pension, retirement assets, stocks and bonds contexts, and business owners seeking valuation of closely held Texas family businesses. Mr. Thompson is also a certified family law specialist — an honor bestowed only to a small fraction of attorneys.
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Skilled At Dividing A Wide Array Of Assets
Texas is a community property state. The Court in a Texas Divorce is required to approve or make a “just and right” division of the parties’ community estate. A just and right division will sometimes be 50/50 – but not always.
In appropriate cases, a just and right division could include a 55/45 or 60/40 or other disproportionate division of the estate in favor of one spouse against the other. Determining what property is community property and what property is separate property is a part of the divorce process, which can become complicated in higher asset cases.
Houston divorce attorney Travis Thompson delivers detailed examination of community property, shared property, separate property and asset valuations affecting:
- Real estate, including primary, secondary, vacation and retirement residences
- Retirement plans and accounts (for instance 401(k) plans, IRAs, pension plans, etc.)
- Motor vehicles
- Cash bank accounts (checking accounts, savings accounts, PayPal accounts, Zelle and Cash App accounts, etc.)
- Brokerage accounts, stocks, and bonds (including cryptocurrency)
- Intellectual property (copyrights, patents, etc.)
- Business Interest (including sole proprietorships, limited partnerships, family corporations)
- Deferred income
- Offshore assets
- Club memberships and travel awards
- Collectibles, heirlooms, memorabilia and antiques
- Furnishings, personal effects, and other personal property
Additionally, marital debt will need to be assessed and divided per Texas community property division laws.
Law Thompson, P.C. works hard for a favorable asset division outcome that leaves you in possession of a share of everything that is rightfully yours. During this journey through the legal process, you receive the very best of our one-on-one personal service that addresses every question and concern.
We are also mindful of the tax considerations that may accompany property division. We will discuss your specific options and help you make decisions that can positively impact your financial situation.
Are you divorcing a high-income spouse? Are you worried about the fate of material possessions accumulated during your marriage? For quality divorce representation that preserves your investment in your marriage, come to Law Thompson, P.C.
Business Valuation in a Texas Divorce: How Your Company’s Worth Is Determined
When a business is part of a divorce estate, one of the most consequential, and most contested, questions is simply: what is it worth?
Unlike a bank account or a publicly traded stock, a privately held business has no ticker symbol and no market price. Its value must be determined through a formal valuation process, and the methodology chosen can dramatically affect the outcome of your divorce.
Texas courts generally recognize three primary approaches to business valuation. The income approach estimates value based on the business’s ability to generate future earnings, typically by calculating a capitalized earnings figure or discounting projected future cash flows to present value. This method is commonly used for established businesses with predictable revenue streams. The market approach compares the business to similar companies that have recently been sold, using industry multiples to arrive at a fair market value. The asset approach focuses on the net value of the business’s assets minus its liabilities, and is often used for holding companies or asset-heavy businesses where earnings alone do not tell the full story.
Beyond selecting an approach, the valuation process involves a thorough examination of financial statements, tax returns, accounts receivable, owner compensation, goodwill, and any liabilities that may affect value. Courts will also consider whether any portion of the business’s goodwill is “personal” – tied to the owner’s individual reputation, relationships, or skill – versus “enterprise” goodwill that would survive a change in ownership. In Texas, personal goodwill is generally treated as separate property, while enterprise goodwill may be subject to division.
Disagreements over valuation are common in high-asset divorces. Each spouse may retain their own expert, and the competing valuations can differ substantially. An experienced Houston divorce attorney will work alongside a qualified business appraiser to ensure the methodology used is appropriate for your business type and that the final figure accurately reflects its true value – neither inflated nor artificially deflated to favor the other side.
The Discovery Process in a High-Asset Texas Divorce
In any divorce involving significant assets, the legal process of discovery is one of the most important tools available to both parties. Discovery is the formal, court-supervised procedure through which each spouse is required to disclose their financial information — and through which your attorney can compel the production of records the other side may be reluctant to share.
Discovery in a high-asset Texas divorce typically involves several mechanisms working in combination. Interrogatories are written questions submitted to the opposing party that must be answered under oath. Requests for production compel the other spouse to turn over documents — bank statements, tax returns, business records, investment account statements, loan applications, and more. Depositions allow your attorney to question the opposing party or key witnesses in person, under oath, with a court reporter transcribing every word. Subpoenas can be issued to third parties — banks, brokerage firms, employers, accountants, and business partners – requiring them to produce records directly, bypassing the opposing spouse entirely.
Discovery is particularly critical when there is reason to believe assets are being concealed or income is being understated. Common tactics used to hide wealth in a divorce include transferring assets to family members or business partners with the intent to reclaim them later, creating fictitious business debts or expenses to reduce apparent profitability, deferring bonuses or commissions until after the divorce is finalized, and underreporting cash income in businesses where cash transactions are common.
When these patterns are suspected, forensic accountants become invaluable members of the divorce team. They are trained to analyze financial records for inconsistencies, reconstruct cash flows, and identify transfers or transactions that don’t reflect legitimate business activity. Combined with the subpoena power of a skilled attorney, forensic accounting can surface hidden assets that would otherwise never come to light.
The discovery process has deadlines and procedural requirements that must be carefully managed. Failure to respond fully and honestly to discovery requests carries serious legal consequences, including sanctions and adverse findings by the court. At Law Thompson, P.C., we pursue discovery aggressively on behalf of our clients and hold opposing parties to their full disclosure obligations under Texas law.
FAQs About High-Asset Divorces
The more you have at stake, the more questions you may have. If you’re heading towards a divorce and worry about what will happen to your wealth and property, we can give you the answers you need. Here are a few our clients ask us the most:
Q: How are retirement savings and pensions handled in a high net worth divorce?
A: Texas is a community property state, which means that assets acquired during the marriage are generally considered community property – and that includes contributions made to retirement and pension plans. To get a fair division, the funds have to be divided into separate and marital property, and then the part that belongs to the marital estate must be divided.
Q: How can a high net worth individual ensure the fair division of property in a divorce?
A: Ensuring a fair division of property in a divorce, especially for high net worth individuals, involves careful planning and collaboration with financial and legal professionals, like those here at Law Thompson, P.C.. You can get a head start on the process by putting all of your financial records together, understanding more about how community property laws work in Texas and setting some priorities.
Q: How long does a high net worth divorce take in Texas?
A: If you and your spouse are completely in agreement on all issues, a high net worth is no barrier to a quick divorce. The fastest possible divorce in Texas takes only 60 days. In most high-asset divorces, the complexity of the financial issues that must be addressed will make the process somewhat longer than a regular divorce. If the case has to be litigated, a divorce may take a year or longer to settle.
Q: What is the role of a lawyer in uncovering nondisclosed assets in a high net worth divorce?
A: In a high net worth divorce, uncovering nondisclosed assets is a critical aspect of ensuring an equitable division of property. The role of a lawyer in this process is multifaceted and involves various strategies to identify and disclose hidden assets. An attorney can initiate a financial discovery process, work with financial accountants, leverage subpoenas to get more information and employ asset-tracing techniques.
Q: Can my spouse get half my business in a Texas divorce?
Q: This is one of the most common concerns we hear from business owners facing divorce in Texas — and the answer depends heavily on when and how the business was founded. Texas is a community property state, which means that any business interest acquired or grown during the marriage may be considered marital property subject to division. However, “subject to division” does not automatically mean your spouse walks away with half.
If you founded your business before you were married, the original value of that business may qualify as your separate property. The challenge arises with appreciation. If the business grew significantly during the marriage — due to your efforts, labor, or marital funds — your spouse may have a claim to a portion of that increased value.
Courts will look at factors including how the business is structured, whether marital funds were invested into it, and how active a role you played in its growth. A forensic accountant and a skilled Houston divorce attorney can work together to establish an accurate business valuation and clearly trace what portion belongs to the marital estate versus your separate property. Proper documentation and early legal counsel are critical to protecting your ownership interest.
Q: What happens to stock options in a Texas divorce?
A: Stock options – including restricted stock units (RSUs), incentive stock options (ISOs), and non-qualified stock options (NQSOs) – are increasingly common components of executive compensation, and they are frequently among the most contested assets in a high-asset Texas divorce.
Whether stock options are considered community property or separate property depends primarily on when they were granted and when they vest. Texas courts typically apply a time-rule formula to determine what portion of unvested stock options were earned during the marriage versus before or after. For example, if an option was granted during the marriage but vests after the divorce is finalized, the court will apportion the marital and non-marital shares based on the relevant time periods.
Vested options that were granted during the marriage are generally treated as community property. Unvested options require a more nuanced analysis. Complicating matters further, stock options carry tax implications that must be factored into any settlement — the tax treatment of ISOs versus NQSOs differs significantly, and a poorly structured agreement can cost one or both parties substantially at tax time. Working with an attorney experienced in executive compensation and a qualified financial advisor is essential to reaching a fair outcome.
Q: How do I protect inheritance from divorce in Texas?
A: Inheritances are treated differently from most other assets under Texas law. Even in a community property state, an inheritance received by one spouse — whether during or before the marriage — is generally classified as that spouse’s separate property. This means it is not subject to division in a divorce, provided it has been properly maintained and documented.
The risk comes from something called “commingling.” If inherited funds are deposited into a joint bank account, used to pay down a shared mortgage, or otherwise mixed with marital assets, tracing that money back to its separate property origin becomes significantly more complicated. In some cases, commingled assets lose their separate property status entirely.
To protect an inheritance in Texas, there are several important steps to take. Keep inherited funds in a separate account held solely in your name. Maintain thorough records — bank statements, the will or trust documents, correspondence with the estate — that clearly establish the source of the funds. Avoid using inherited money to make improvements to community property without careful legal guidance. If you have already received an inheritance and are concerned about how it has been handled, an attorney can help you assess whether tracing is still possible and build the necessary documentation.
Q: What is a QDRO and do I need one?
A: QDRO stands for Qualified Domestic Relations Order. It is a specialized legal document required to divide certain retirement accounts – such as 401(k) plans, 403(b) plans, and pension plans – between divorcing spouses without triggering early withdrawal penalties or immediate tax liability.
Under normal circumstances, withdrawing money from a retirement account before age 59½ results in a 10% penalty plus income taxes. A QDRO creates an exception to this rule by establishing the non-employee spouse as an “alternate payee,” allowing a portion of the account to be transferred to them in a tax-advantaged way.
Not every retirement account requires a QDRO. IRAs, for example, are divided using a different process called a transfer incident to divorce. However, employer-sponsored plans almost always require one, and the document must be drafted with precision – plan administrators have the authority to reject QDROs that do not meet their specific requirements, which can delay or complicate the division of assets.
If your spouse has a pension, 401(k), or other employer-sponsored retirement account with value that accrued during the marriage, you almost certainly need a QDRO to receive your share. Because these documents are highly technical, it is advisable to work with an attorney who has experience drafting them and coordinating with plan administrators to ensure acceptance.
How Can A Forensic Accountant Help You In Your Divorce?
When you have considerable assets, you have a lot worth protecting, and you also have a lot to potentially lose in your impending Texas divorce. Typically, high-asset individuals who make their way through divorces want to do everything they can to help preserve their wealth, and there are numerous methods you can employ to help make this happen. One such method many high-asset individuals are choosing to help them get their fair shares amid divorce involves adding forensic accountants to their divorce teams.
Just what is a forensic accountant, and how can one help you preserve more of the wealth you worked so hard to amass? According to Forbes, forensic accountants are essentially accounting specialists who can help you properly divide assets, or evaluate the value of certain assets, among other efforts. While forensic accountants can potentially help people of all income levels as they navigate their divorces, you may find it particularly beneficial to enlist the help of one if you have a lot to lose amidst your split.
Say, for example, that the relationship between you and the person you are divorcing has become especially ugly or acrimonious, and you have cause to believe he or she is hiding assets or income information from you. A forensic accountant will typically have the means to investigate further, potentially uncovering unethical or shady tactics he or she might have employed in an attempt to tuck away more money or assets for his or herself.
Even if you do not have concerns about your former partner hiding assets from you, a forensic accountant may be able to help you determine the value of certain complicated assets, such retirement accounts, real estate holdings or antique jewelry. Once you have a precise sense of what these assets are worth, you can move forward with dividing them appropriately.
Helping You Through The Difficult Decisions — Contact Law Thompson, P.C.
You can reach us right now to make an appointment for an initial consultation. Contact us by phone at 281-369-8665 or stay online to send an email message.
From our Houston office, we represent clients in Harris County, Montgomery County, and surrounding counties.