High Asset Divorces: Separate Property Real Estate and Trusts
It is important to know what happens to your homestead residence if it was purchased prior to marriage and other assets formed into a trust before marriage without a prenuptial agreement.
- Separate property homestead residence
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 divorce. Being a Petitioner is invaluable, thus if you have decided that you need to divorce your spouse, you should look to file the divorce petition 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 (1) place a band-aid on all assets of the marriage to ensure there is no wasting of assets, (2) determine custody and access of the children, and (3) ensure payments remain the same towards any separate or community property assets. Temporary spousal maintenance, exclusive use of property, and injunctions are granted at this hearing. In a divorce with high value 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 to ensure that the children and property of the divorce are protected.
2. Discovery Phase and Experts
The discovery phase may be cumbersome and painful. Discovery consists of multiple written questions that one spouse is asking the other during the divorce litigation. These include production questions (asking for documents), interrogatories (questions require a written notarized responses), admissions (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 processes 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, the value of any potential fraud against martial property, or the overall value of a business that one spouse may own. These issues 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 going to trial in a case. 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. Depositions can sometimes be a total of 6 hours of questing the deponent.
During a deposition, attorneys may ask about finances, assets, parenting abilities, or any issues relevant to the divorce. It’s a structured process, but it can feel intense—especially if the other lawyer is trying to challenge credibility or uncover hidden details, such as finding additional martial assets. Being honest and composed is key, as misleading answers can backfire. Having an attorney present helps ensure that questions are fair and objections can be made when necessary. While depositions may seem intimidating, they are a valuable tool in ensuring transparency and helping both sides prepare for a fair resolution.
4. Mediation
Meditation may occur in the middle or toward the end of the litigation process. The cost of 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 day (4 or so hours) 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 a final trial and many outcomes or solutions may be obtained by agreement of the parties to which a Judge cannot order. The flexibility of mediation makes this process less painful and costly than attending a 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 and facts of each specific case. A trial before the Judge is cheaper and may simplify many matters. It is important to know for every 1 hour in Cout it takes more or less 4 hours to prepare.
A jury trial with a minimum of 2 experts and multiple other fact witnesses should take anywhere from 4 to 7 days. A trial before the Judge for a similar case may take 2-4 days, depending on 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 divorcing with high assets. It will likely be costly, painful, but necessary. Many other factors such as summary judgements or motions to exclude witnesses, experts, 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.
Dallas High Asset Divorce Attorneys
Nacol Law Firm P.C.
(972) 690-3333
Family Conflicts and the High Conflict Spouse
A divorce involving a high conflict personality can be more challenging than other divorces, because of the person’s inability to compromise or ever see the middle ground. People like this are called “High Conflict People” (HCP’s), and the divorce courts are full of them.
Are you glad you are not married to one of these people or are you? HCP’s seem very caring and sincere and it may take months or years before a legal professional can identify this personality disorder. HCPs may cause enormous emotional pain and excessive financial costs to their spouse and children before this disorder is brought to light.
Bill Eddy, legal specialist of the High Conflict Institute, has given a list of
The High Conflict Personality Pattern of HCP Personalities
- Rigid and uncompromising, repeating failed strategies
- Unable to heal or accept a loss
- Negative emotions dominate their thinking
- Won’t reflect on their own behavior
- Can’t empathize with others
- Preoccupied with blaming others
- Won’t accept any responsibility for problems or solutions
HCP’s stay unproductively connected to people through conflict and will continue to create conflict to maintain any sort of relationship, good or bad. Since HCP’s undermine all relationships, they constantly repeat their same patterns and usually end up divorcing repeated times. 20-30% of all couples getting divorces have at least one HCP spouse.
According to the High Conflict Institute, HCPS are driven by four primary fees:
- Fear of being ignored
- Fear of being belittled or publicity exposure
- Fear of being abandoned
- Fear of being dominated, includes fear of losing control over you, the other spouse, their money/assets, or themselves
What can the spouse of an HCP do to help bring the family conflict or divorce to completion?
- Tell your attorney what your bottom line is and stay with your decision.
- Maximize any leverage you have and stay on the course.
- Choose your battles carefully.
- Everything must be in writing.
- Work on keeping total & consistent emotional detachment from the HCP.
Just remember the HCP feels that since you are no longer together, and since you know too much about him/her, you must be discredited so that no one will think that they are the problem!
You will need to learn some practical skills on communication and response to your HCP and also when & how to let your attorney deal with this situation, how to enforce your guidelines, and hopefully, your thoughtful and reserved conduct will result in the best possible outcome.
Nacol Law Firm P.C.
Dallas Divorce Attorneys
Legal Wills & Trusts in Texas : Contesting a Texas Will
At the Dallas firm of The Nacol Law Firm PC, our lawyer Mark A. Nacol, offers more than three decades of experience in resolving Texas probate matters and Texas contested wills. Our trusted legal counsel has assisted numerous clients throughout Texas.
For more information on Texas probate law and Texas will contests, from Dallas Attorney Mark Nacol, contact us today at (972) 690-3333.
Breaking Up a For Profit Corporation
A For Profit Corporation can be a useful tool if utilized appropriately. One major problem with a For Profit Corporation is the lack of flexibility to dissolve the Corporation when a disagreement arises between the equity shareholders. If ownership in a For Profit Corporation consists of 50% – 50% split in equity then there may be issues down the road.
Many future circumstances may warrant a dissolution of the For Profit Corporation, such as a dispute on the direction of the business, the profitability of the business, or simply a disagreement regarding employment and management duties. When these disputes arise, it may make the For Profit Corporation untenable and impractical. This can be a problem if one owner of the company wishes to continue business as usual and the other owner wishes to dissolve the corporation.
When making the decision to enter into a For Profit Corporation and splitting equity within the Corporation at a 50/50 ratio please keep in mind a couple of things:
- It will be hard to dissolve the Corporation with a 50/50 split in equity;
- It will cost additional expenses to appoint a receiver to manage the company;
- It will cost additional expenses to retain a lawyer for the purpose of forcibly winding down a For Profit Corporation;
- It will be an uphill battle to dissolve a For Profit Corporation that creates jobs in the community because the policy of Texas Courts’ is to find any alternatives to a dissolution that may bring termination to many employees.
- It will be a complex and time consuming undertaking to dissolve a For Profit Corporation if both equity shareholders do not agree.
Prior to forming a For Profit Corporation, you should research all of your options. Many business organization can provide tax relief and flexibility without the rigidity of a For Profit Corporation. Please seek an experienced attorney when creating or amending any business organization and ask the pros and cons of all business entities.
Contract Review: Proper Form to Prevent Future Breach
Before signing a contract, read through it carefully. Have an attorney review the contract. Make certain that you know what obligations are stated and/or implied. If you are uncertain as to your duties and you sign the contract, you may be liable for a future unintentional breach of the contract.
Contract negotiations, especially in the context of important financial contracts, can be taxing and difficult at best. An attorney can assist you with negotiations to ensure your needs and requirements are met. Additionally, your attorney can properly draft and/or review the contract, explain to you your rights and duties under the contract, and make suggestions as to provisions which may be necessary to protect your best interest.
The following is a good guideline for contract review. It is not an all-inclusive list, but may be used as a tool to assist with contract drafting and review:
- Make sure the language contained in the contract is clear and understandable. In most cases, limit the use of highly technical terms when possible. Unnecessary legal wording may make the contract confusing, thus use regular wording to make sure the parties understand what the contract says and means.
- Give a clear and concise description of the goods and/or services to be received.
- Give a clear description of the amount of money or other consideration for the contract.
- If any payments are payable outside the U.S., make sure the payments are in U.S. dollars.
- Make sure the contract contains a specific time and place for performance.
- The contract should contain a method of providing notice of default and opportunity to cure default.
- Rights, obligations, and duties of every party should be clearly listed. Each party’s responsibilities should be identified in understandable wording.
- Use clear and concise names when listing parties to the contract, including address, telephone number, fax number, and email addresses.
- Be sure you have a contact person for each party to the contract, including address, telephone number, fax number, and email addresses.
- Establish a date the contract is to begin and end.
- Make sure the contract contains all other important dates to the contract (milestones, deadlines, reports, etc.). Use full dates. Such dates should be clearly identified.
- The procedure for renewal of the contract should be clearly identified.
- If an employment contract, the procedure for termination of the contract should be clearly identified (termination for cause and/or termination at will).
- Indemnification, liquidated damages, attorney’s fees, waiver of contractor’s liability, waiver of statutes of limitation clauses should be incorporated if necessary or applicable.
- Establish the contract is governed by the laws of the State of Texas.
- Establish the venue for suit is in the county where the Company’s main office or parties signing are located or agree otherwise.
- If insurance is required, define the types and levels of coverage.
- Confidentiality provisions, if applicable, should be incorporated.
- Ensure Act of God or force majeure clauses are incorporated if necessary.
- Assignment by either party should be approved in advance in writing.
- Incorporate an Alternative Dispute Resolution clause, if required or desired.
- All appendices, exhibits, attachments, and schedules should be attached.
- Title and authority of person signing the contract should be properly stated and warranted.
- Spelling, formatting, grammar, punctuation and general appearance of the contract should be professional and accurate.
Preprinted form contracts should only be viewed as a starting point, not a final expression of the parties’ agreement. Protection for all parties is usually minimal to non-existent in such pre-printed forms. No pre-printed form can be expected to cover the particulars of all agreements between two or more specific parties. Having an attorney review and negotiate pre-printed forms may prove prudent and smart.
It is imperative that the terms of a contract are fairly negotiated, properly drafted, and reviewed to ensure the contract meets the intentions of the parties.
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization








