Divorce cases are often complicated because they involve multiple issues apart from the legal aspects of separation. From alimony to tax consequences, child custody, and property division, there is much that both parties have to deal with. There is a lot of paperwork and documentation to manage too. Things can get even more complicated in a high-asset divorce case.
When both people have a high net worth, this situation increases the scope of disputes for couples. With such big stakes, both parties involved need to consider several factors, besides the conventional ones that are a part of typical divorce cases.
Here are the facts that you need to be aware of for handling a high-asset divorce case.
Start with identification and categorization of assets
The biggest challenge in such cases lies in the identification and categorization of assets because they are often many in number and high in value. The ones that are acquired before marriage are set apart from the rest because they belong to either of the spouses.
Conversely, this is not the situation for some other separate assets because their value appreciates over time. Moreover, things are different for couples who sign a prenuptial contract that applies property rights and reduces the complications if they end up divorcing down the road.
Evaluating assets is crucial
Special evaluation of assets is required in a complicated, high-asset divorce case. It is extremely necessary when the scenario involves businesses along with personally-owned assets.
In this type of situation, you will need to get an expert opinion for ascertaining the accurate worth of the business. They will do it on the basis of factors that include:
- Accounts receivable
- Debts
- Goodwill
- Annual statements
Additionally, assets such as retirement accounts, intellectual property, stocks, investments, and profits also require special evaluation by an expert.
High-asset divorce case? Tax consequences matter too
Tax implications are a part of typical divorce cases but they become all the more important when expensive assets are involved. Obviously, dividing high-value assets can lead to major tax concerns for both of the involved parties.
You can go through https://www.manassaslaw.com/family-law/divorce/ to understand the aspects that actually come into play during a typical divorce case. And you will probably comprehend the significance of hiring an expert lawyer to simplify the tax consequences of these aspects.
Duration of proceedings may be longer
Since a high-asset divorce case is more complicated than a regular one, you can expect the proceedings to take longer than usual. The processes of asset categorization, evaluation, and division are extremely cumbersome and can take a great deal of time.
Therefore, it makes sense to get ephemeral orders for legal expenses, spousal maintenance, and custody matters. Since things can get really tough for couples battling in such cases, many of them end up settling for an undisputed divorce to avoid the entire process altogether.
Final words on handling a high-asset divorce case
High-end divorce cases require special expertise to handle and you should choose only a seasoned professional in family law to manage the proceedings. Only they can understand the special implications involved and address them effectively to get you a resolution as soon as possible.