Divorce Attorney for Executives in Dallas, TX

Divorce is always complicated, but for executives in Texas, the legal and financial implications are even more challenging and complex. High-net-worth estates, business interests, complex compensation packages, and privacy concerns add to the intricacy and the stress. An experienced executive divorce attorney can offer critical guidance as you seek a seamless legal separation. 

The team at Balekian Hayes, PLLC, has extensive experience representing CEOs, partners, and high-level managers in complex divorce cases. We offer tailored solutions designed to meet your unique needs and protect your best interests. Contact us today to schedule a meeting with an attorney who has experience handling divorces for executives in Texas.

Understanding Texas Divorce Laws for Executives

Executives facing divorce may encounter challenging issues involving business interests, confidentiality, and complex compensation structures. Working with legal counsel experienced in high-net-worth divorces can help protect your personal and professional interests throughout the process.

Additionally, because Texas is a community property state, most assets acquired during a marriage are subject to division. For executives, this can include stock options, bonuses, retirement plans, and deferred compensation. Forensic accountants or financial experts can accurately value these assets. Texas courts aim for a “just and right” division, which does not always mean a 50/50 split. A family law attorney with Balekian Hayes, PLLC, can help you pursue a fair outcome.

Unique Challenges Faced by Executives

Divorce for executives in Texas can be uniquely complex. This not only means more challenges, but also higher stakes. Here are some of the most significant challenges in CEO divorce cases.

Complex Executive Compensation and Benefits

There’s a lot to parse when it comes to executive compensation and benefits, which makes fairly dividing them a difficult task. Not only are there more factors to consider, but the types of income involved can be difficult to evaluate. Those types of income can include:

• Base salary and bonuses
• Restricted stock units (RSUs)
• Stock options
• Deferred compensation
• Performance-based incentives
• Pensions and other retirement benefits

While evaluating salaries and annual bonuses can be straightforward, things like RSUs, stock options, and deferred compensation can be far more challenging to value. These assets may not vest until years after the divorce, but a court may still consider them marital property. 

Much of the value of an executive’s compensation and benefits is also speculative, which means the courts will need to determine whether to value them at the time of the divorce or at a later date. For this reason, things like employment agreements, vesting schedules, and tax implications require significant scrutiny.

Managing High Net Worth and Assets

Under Texas law, married couples have equal ownership of almost any property acquired during their marriage. For an executive with a high net worth, that often means managing a wide range of assets, including:

• Real estate portfolios
• Private equity
• Investment accounts
• Trusts
• Offshore accounts
• Luxury assets

Protecting your long-term security when dividing these assets requires a meticulous and comprehensive approach. We work with financial experts to leave no stone unturned when working to categorize and fairly divide your assets. 

Handling Business Interests and Valuation

Ownership or equity in any business adds another complicated wrinkle to executive divorce. Fair valuation of your business interests is critical, and it’s also challenging. Determining that valuation involves analyzing:

• Company earnings and revenue history
• Ownership interest vs. control
• Future earning potential
• Client contracts and business goodwill
• Inventory and intellectual property

The other spouse does not necessarily need to have had any involvement with the business for it to be subject to division. This means your lawyer will need to not only determine the value of the business, but also determine how much of it is considered community property, whether or not both spouses are entitled to any future earnings, and whether it’s best to sell, divide, or otherwise restructure the business. 

Balekian Hayes, PLLC, works with forensic accountants, CPAs, and valuation professionals to carefully appraise and protect your business interests. 

Protecting Executive Assets During Divorce

While there are some factors beyond your control when seeking a fair divorce settlement, there are proactive measures you can take to protect your assets. This is particularly critical for high-net-worth executives with a wide range of assets and sensitive business interests.

Strategies for Safeguarding Business Interests

To protect your business interests in a divorce, consider the following:

• Prenuptial or Postnuptial Agreements – Prenuptial or postnuptial agreements can define your business as separate property, protecting it from division during a divorce. 
• Buyouts – To preserve the continued operation of your business, sometimes it’s best to buy out the other spouse’s interest. This can involve lump-sum payments, structured settlements, or offsetting other assets. 
• Business Valuation Clauses – Outlining how your business will be valued in the event of a divorce in a contractual provision can provide clarity, prevent disputes, and substantially speed up the divorce process. 
• Separating Business and Personal Finances – Crossing your finances can muddy the waters in a divorce settlement and open the door for community property claims. Keep them separate and carefully documented.

Can a Spouse Claim a Portion of Restricted Stock Units (RSUs) in Texas?

In short, yes, a spouse can potentially claim a portion of RSUs in a divorce. However, working with an experienced executive divorce attorney can help avoid unnecessary division of these assets.

RSUs are a common source of disputes in divorce for executives in Texas. These assets may not vest until well after the divorce is finalized, but the court may still decide that they’re part of the community estate. Because they’re also speculative assets, valuing them can be a challenging task that requires careful examination and in-depth knowledge.

Community Property vs. Separate Property in Texas

Texas is one of a small number of community property states. This means that almost all assets acquired during a marriage are considered the property of both spouses. However, there are a few instances where one spouse’s assets may be considered separate property and, therefore, not subject to division in a divorce. That separate property includes:a

• Assets acquired before marriage
• Settlements for personal injuries (excluding lost wages)
• Individually received gifts or inheritances

Maintaining Privacy

In addition to the intricate financial implications of an executive divorce, public exposure is often another significant concern. Without careful measures, a high-profile divorce can lead to sensitive professional and personal information finding its way into the hands of the media or competitors. 

To avoid these issues, Balekian Hayes, PLLC, implements the following strategies:

• Protective orders to seal sensitive records
• Non-disclosure clauses
• Confidential mediation and arbitration

Discretion is critical in executive divorces. Our attorneys will prioritize your privacy and fight to protect it throughout the proceedings and beyond.

Contact Expert Divorce Attorneys at Balekian Hayes Today

Divorce for executives in Texas requires a law firm that understands the intricacies of your finances, the nuances of local family law, and the importance of your privacy and long-term security. Balekian Hayes, PLLC, has decades of experience handling high-asset divorces and fighting for fair settlements on behalf of our clients. Contact us for your consultation today.