Divorces can be extremely costly, both emotionally and financially. In the case of a high-asset divorces where a lot of financial loss or gain is at stake, a great deal of stress can be mitigated through doing good research, and taking the time to plan strategies logically and rationally.
But first, what is a high-asset divorce, and how do you know if you’re dealing with one?
A high-asset divorce applies to high net worth individuals with various and complicated assets. These can involve a complex mix of stock options, real estate holdings, assets in a trust, company ownership, tax benefits, deferred compensation agreements, and money in the bank. In practice, splitting these up between two parties is often challenging.
This blog will give a brief overview on the best steps to take to plan financially for a high-asset divorce.
Hire a high-asset divorce lawyer
Hiring a specialized high-asset divorce attorney to work on your case is one of the best things that you can do for your high-asset divorce filing. He or she will help you to uncover all assets that your spouse may be taking precautions to hide. Divorce lawyers will be well-informed on the laws for the state, particularly in the areas of marital assets, and will advise you on your rights.
Uncover all assets
Assets in divorce filings will fall into three categories: separate property, marital property and community property. In general terms, if an asset was acquired during the marriage for private joint use, it will be considered marital property. If an asset was acquired before marriage by one spouse, it will be considered separate property and will remain his or hers. If an asset or property earns income or gains value, it may be considered community property.
Keep it private
Ordinarily, divorce proceedings and associated documents are public information. In high-asset divorces, it may be a good idea to file for a sealed divorce to protect the privacy of you and your family.
Legal guidance
It is important to seek the trusted legal guidance of attorneys with experience in a high net worth divorce so that your individual case can be assessed.
Source: Findlaw, “3 practical legal tips for high-asset divorce,” accessed Aug. 01, 2017
