There is no straightforward definition of what constitutes a high-asset divorce. However, these cases typically involve a total net marital estate that could range from several hundred thousand to several billion dollars. With more assets at stake, the separation tends to become more complex, costly and emotionally draining.
Complex asset valuation and division
Getting an accurate market value for the marital property in a high-asset divorce is a complex process. It goes beyond simply dividing bank accounts; it involves everything from real estate and investments to businesses, retirement accounts and luxury items.
Figuring out how to divide all these assets fairly is one of the biggest challenges in divorce cases. This is why it is best to enlist the help of financial professionals, such as appraisers and forensic accountants, during this process to ensure fairness and equity.
Hidden assets and income
High-asset divorces often involve considerable wealth, which can make them more likely to have conflicts. There might be an incentive for one party to hide assets or underreport income to keep more of the wealth for themselves. Ensuring all assets are accounted for is crucial for a fair division of assets in a divorce. It is similar to a treasure hunt, but the outcome will significantly impact life post divorce.
Spousal support
Deciding the appropriate amount of spousal support, or alimony, is another major issue in high-asset divorces. The amount can be substantial, leading to disputes over what is fair and reasonable. Several factors, including the length of the marriage, the couple’s standard of living, and the financial needs and abilities of both parties come into play.
Divorces involving high-value assets come with unique challenges. Approaching them with enough knowledge can be a significant step toward a fair resolution and ensuring a stable future for everyone involved.
