Splitting up from your spouse is always going to be an emotionally and financially complicated situation. While most couples will share assets, referred to as marital assets, what exactly is a high-asset divorce?
After all, divorces are pretty commonplace in the USA. According to the Centers for Disease Control and Prevention (CDC), the number of annual divorces reported by 45 states and D.C. is 630,505.
So, how is a high-asset divorce different from other separation agreements?
Let’s define what a high-asset divorce is first.
What’s a High Asset Divorce?
As the name indicates, a high-asset divorce is a proceeding where marital assets are valued at or above $1 million.
Sometimes referred to as a high net-worth divorce, we must clarify a few elements worth remembering when proceeding.
And remember to consult your family lawyer for references or additional information.
What’s Included in a High Asset Divorce?
All assets you share will be included in the proceedings. Your divorce attorney will assist you with compiling a comprehensive list of assets or marital property. These assets include:
- Your home, vacation, and rental properties
- All vehicles you and your spouse have purchased
- Children’s College Funds
- Investment accounts
- Businesses owned
- Stocks in business
- Savings accounts
- Jewelry
- Pets
- And any debts
This is an extensive list. Ensuring your divorce lawyer lists all these assets correctly is essential. Otherwise, you could be accused of hiding assets or misreporting them deliberately.
If there are issues in misreporting, you can contact a forensic accountant to do an in-depth report.
High Asset Divorces are Expensive and Take Longer
Due to the number of assets, a high-asset divorce will be more expensive. It’s also worth noting that marital property will need to be evaluated.
It shouldn’t be surprising that high-asset divorces will take longer than a normal separation.
Especially if there’s property division.
Property Division Can Cause Headaches
Defining what separate property and marital property is usually the snagging point in any high-asset divorce.
Generally, any property/asset earned during the marriage is classified as marital property/assets.
However, if one of the spouses inherits capital, this will be separate. While this seems straightforward, it can become more complex if there’s transmutation.
High Asset Divorces Will Impact Taxes
When going through any divorce, you must remember tax implications. Divorcees will have to pay taxes on their marital assets.
If the couple is still on speaking terms, it is better to transfer ownership of assets during the divorce proceedings.
Having a qualified high-asset attorney on your side will mean they can assist with tweaking your strategy and working within the tax codes.
Everyone needs financial help during a divorce.
Mediation is Best
A high-asset divorce case will attract attention. When divorces are forced into the courts, they become a part of the public record.
Resolving your divorce via mediation is best if you want your personal life to stay out of the prying public eye. This is especially true when the high-value assets are company shares.
Now that you understand a bit more, who will assist you?
Crosson Richetti & Daigle Will Assist With All High Asset Divorces
At Crosson, Richetti, & Daigle, we believe in building strong personal relationships before getting started with all high-asset divorces.
You can schedule your “Pay it Forward” consultation now.
Or, if you need a question answered, you can feel free to contact us.
