Dividing high-value property during a marital separation can be difficult. However, there are many things to consider, and you must know how to protect your interests. For starters, you should hire an experienced divorce lawyer who understands the intricacies.
Next, you want to make sure that all of your financial information and documentation are available to you so YOUR attorney understands your marital financial universe. If you don’t handle the finances start looking into things now. The more you know, the better protected you will be during the separation process.
This article will discuss some tips on dividing high-value property during your divorce.
A High Net Worth Divorce – What Is It?
In a high net-worth divorce, one or both parties have a high net worth consisting of all kinds of assets that make up that high net worth. The value of this type of asset can range from $5 million and up, and divorcing couples typically hire divorce attorneys with the experience necessary for such cases.
Dividing High-Value Property in a Divorce
During the divorce or separation process, if the parties cannot reach an agreement on the value of a particular asset, we will hire experts with a focus in that area to value the asset. If the parties agree, an expert can be retained jointly to provide a joint valuation. If the parties do not agree, each party will retain his/her own valuation expert. Owens & Perkins has been in Scottsdale since 1967 and we have resources and experts that will assist with any type of valuation needed.
This valuation process will ensure fairness in the division of property, which is usually not divided equally (it’s more of a balance sheet approach) between spouses – including but not limited to financial assets, real estate holdings, and businesses.
How Businesses Are Handled in a Divorce
If a spouse owns their own business, the divorce process will also need to include discussions (or litigation) about how that company will be handled, if both parties have been actively running the business. If only one spouse runs the business, it is likely that spouse will continue to run the business and a business valuation will need to be done. It is not recommended that both spouses try to continue to run the business during or after the divorce as tensions can run pretty high.
When considering these types of issues, it’s wise to consult with an attorney experienced in high-value divorce first before making any decisions together that could lead down roads you weren’t expecting.
The best thing we can recommend is hiring someone familiar with high-value marital cases because these sorts of situations often require more time, attention, and expertise to navigate.
Dividing Assets and Property
The specifics of what is divided during divorce often depend on the type and value of assets being split. For example, high net worth couples will divide retirement accounts, stock options, or other financial holdings in addition to property like homes and cars.
When dividing properties with significant equity in them (especially those where one person has a greater share than another), there’s also the issue of how to split up any debts the couple has between them (like credit card balances, loans, or mortgages).
If one spouse is trying to buy out the other’s interest in marital property and it’s a high-value asset, such as when one party wants their share of equity from a home that exceeds $1M, then they may have to liquidate some other assets before being able to do so.
High-Value Divorce and Taxes
With high net worth assets come with more complex tax issues, especially if the couple is divorcing. You are going to need a good CPA to consult with during the dissolution process. Owens & Perkins has been in Scottsdale since 1967 and we have good working relationships with our financial experts to assist you.
High-value marital separations are complex and challenging. If you have high net worth property, it is imperative to consult an experienced divorce lawyer before proceeding with a divorce so that all aspects of the process are clearly understood and you and your legal rights are protected.