Jun 10
Insights from the For Better, Worse, or Divorce Podcast — Episode #133: Strategies in High-Net-Worth Divorces | Interview with Patrick Kilbane
Hosted by Brian Walters and Patrick Kilbane
Divorce is never simple. But when significant wealth is on the line, like investment portfolios, business interests, executive compensation packages, real estate, and retirement accounts, the stakes rise dramatically. A misstep in a high-net-worth divorce can cost you millions of dollars in assets and years of financial security.
In Episode #133 of For Better, Worse, or Divorce, Walters Gilbreath founding partner Brian Walters sat down with wealth advisor and author Patrick Kilbane to unpack the unique complexities that define high-net-worth divorce cases.
Here is what every high-net-worth professional in Texas needs to understand before the process begins.
There is no single dollar threshold that automatically makes a divorce “high-net-worth,” but the classification generally applies when a couple’s marital estate involves substantial and complex assets that require specialized legal and financial expertise to properly identify, value, and divide.
Common indicators include:
If your estate involves any of these elements, you want to consider hiring an attorney with experience in high-asset property division.
One of the most important takeaways from Brian and Patrick’s conversation is that high-net-worth divorce takes a team. Your attorney is essential, but other experts may be required.
Depending on your circumstances, your legal team may work alongside:
At Walters Gilbreath, PLLC, we regularly collaborate with experienced financial professionals to ensure our clients’ estates are accurately valued and strategically positioned for the best possible outcome.
Brian and Patrick identified several challenges that consistently arise in high-net-worth divorces that simply do not appear in the average case:
Investments, private equity holdings, and alternative assets like cryptocurrency or collectibles can fluctuate significantly in value. Timing matters enormously when it comes to valuation dates. An experienced divorce attorney will know how to strategically approach asset division to protect your long-term financial position.
Texas is a community property state, meaning assets acquired during the marriage generally belong equally to both spouses. Property owned before the marriage or received as a gift or inheritance remains separate unless it has been commingled with marital funds. Proving what is separate property requires documentation, often requiring support from a forensic accountant. This is an area where the experience of your legal team directly determines your financial outcome.
Stock options, RSUs, bonuses, and deferred compensation packages are common in executive roles, and they create real complexity in divorce. The key legal question is often determining when this compensation was earned. If RSUs were granted during the marriage but vest after separation, a portion may still be community property. Your attorney needs to understand how these instruments work to ensure you are not giving up more than the law requires.
If one or both spouses own a business, that business must be valued, and that valuation is often deeply contested. Factors like goodwill (both personal and enterprise), revenue projections, and the owner’s compensation all come into play. Courts also must determine whether the business qualifies as community or separate property under Texas law. This analysis can be complex, especially if the business was started before marriage or received as an inheritance.
The financial decisions made during a divorce have consequences that extend far beyond the settlement table. Patrick Kilbane discussed several forward-looking strategic considerations that high-net-worth individuals should prioritize:
Divorce proceedings can be lengthy and expensive, sometimes taking a year or more to resolve. During that time, assets may be frozen, access to accounts restricted, or cash flow disrupted. Planning ahead for how you will fund living expenses, legal fees, and business operations is critical. Failing to anticipate these constraints can force concessions you would not otherwise make.
Court proceedings are generally public record. For high-profile individuals, business owners, or executives, the last thing you want is sensitive information or damaging personal allegations exposed in open court. Private judges and the use of confidentiality protections can help protect your case from public scrutiny. Walters Gilbreath, PLLC, has experience with private judge litigation specifically designed to protect our clients’ privacy.
The moment divorce becomes a real possibility, proactive steps matter. This includes getting a clear picture of all assets, understanding what is separate vs. community property, and ensuring key financial and business records are documented and accessible.
Perhaps the most important advice from the episode was the emphasis on the team you hire at the outset of a high-net-worth divorce defines the trajectory of the case.
Patrick Kilbane recommends taking these steps early:
Brian and his staff were great. Brian’s direction and expertise provided me with the legal information relevant for my needs over several years now. He listens and is steadfast which gave me comfort in the courses of action. I highly recommend him.Brian and his staff were great. Brian’s direction and expertise provided me with the legal information...
Larry M.
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