Divorce is always a difficult time for people facing the end of a marriage. There are an array of personal, practical and emotional challenges that accompany a divorce, and coordinating the separation of a combined life can be one of the foremost difficulties. This is especially true when the financial complexities of a high-asset divorce are present.
The tech industry has a strong basis in innovative development and entrepreneurship, including the creation of numerous small startup companies, that can pose interesting challenges during divorce. Before a company is sold or made available for investment through a public offering, it can be difficult to properly assess the value of a startup.
In Texas, assets gained during the marriage are, by default, community property, which means that income from the sale of a startup or an IPO can be expected to be divided in half at the time of a divorce. During some cases, this can lead one party to attempt to hide or devalue assets by postponing the monetization of a startup or the licensing of a product in order to obscure their true values. In other cases, a divorce can lead to either a premature sale or a forced business partnership in an attempt to divide the company through its shares or through a cash sale.
People with significant investments and real estate assets as well as startups, inventions and other highly valued assets can work with a divorce lawyer in order to seek a fair settlement. Due to the complexity of a high-asset divorce, legal representation can be very important in dealing with the challenges posed by property division.