Due to the significant wealth and financial intricacies, high-asset divorces are more complex than typical divorces. The stakes are higher, and the process requires careful consideration of multiple factors.
Here are some ways high-asset divorces differ from standard divorces.
Complex property division
Property division is much more complicated in a high-asset divorce. High-net-worth individuals often have diverse assets, including real estate, investment portfolios, businesses, and retirement accounts.
Determining the value of these assets can be challenging, especially if some are hard to liquidate or involve stock options and executive compensation. Ensuring an equitable division requires expert financial analysis and possibly even forensic accountants.
Hidden assets and income
High-asset divorces may involve hiding wealth or misrepresenting income to protect assets from division. One spouse commonly moves funds into offshore accounts, conceals valuable assets or underreport income.
Discovery of these hidden assets can lead to litigation, and both parties must work closely with attorneys and financial professionals to ensure transparency and fairness. While the process is challenging, ensuring a fair division of property and assets is necessary.
Spousal support considerations
Alimony or spousal support is another area where high-asset divorces differ. The higher standard of living enjoyed during the marriage must be considered, and spousal support amounts can be substantial. Courts will look at both spouses’ financial needs and capabilities, often leading to long-term or even lifetime support in some cases.
Business ownership
Business interests in high-asset divorces add an additional layer of complexity. Valuing and dividing business shares or ownership interests requires careful handling to ensure that the business continues operating while providing a fair division to both parties. Business appraisers are often necessary to determine accurate values.
The complex nature of a high-asset divorce is one of the many reasons it’s wise to seek early legal guidance.
