Divorce is never easy, but it can be even more challenging when high assets are involved. A high-asset divorce typically involves one or both spouses with a net worth of at least $1 million. Because so much is on the line – marital assets, business assets, trusts, real estate, etc. the stakes (and emotions) are often raised. According to the divorce attorneys at Schoenberg Family Law Group, “a high asset divorce comes with complications and considerations that may not exist in other divorce cases.” However, there are some strategies to help mitigate the challenges that typically come with a high-asset divorce.
The Challenges of High Asset Divorces
A complex financial landscape is one of the primary challenges that come with a high-asset divorce. Couples with a high net worth may have multiple sources of income, various investments, material assets (such as expensive handbags, watches, art, etc.), and other assets that need to be accounted for. Accurately valuing these assets can be a challenge as there are often disagreements over their value and how to divide them.
A secondary challenge to high-asset divorce is the emotional toll. While emotions often run high during any divorce case, the amount of money and assets at stake heighten emotions. It can be difficult to remain objective and rational with so many assets on the line. Emotions such as anger, resentment, and fear cloud judgment and make it difficult for both parties to reach a fair settlement.
Strategies for Handling High Asset Divorces
If you are facing a high-asset divorce, there are several strategies you can employ to help handle the process and protect your interests. Listed below are some key strategies for you to consider.
Work with an Experienced Divorce Attorney
One of the most crucial steps in any divorce is finding the right attorney. In a high-asset divorce, it is imperative to work with an attorney who has experience handling complex financial situations. Seek an attorney with a successful track in high-asset divorces and who is knowledgeable about local laws.
Identify All Assets
It is crucial to identify all assets and income sources in a high-asset divorce. This may include real estate, investments, retirement accounts, businesses, and other assets. A forensic accountant or financial expert can help identify all assets and ensure that they are valued accurately.
Hire a Financial Expert
A financial expert can help ensure that all assets are valued accurately, and can also provide insight into the tax implications of different asset distribution scenarios. They can help develop a financial plan for life after divorce, which may involve investing, budgeting, and tax planning.
Consider Mediation or Collaborative Divorce
Mediation or collaborative divorce can be an effective way to reach a fair settlement without going to court. The mediator is a neutral third party who helps both parties talk through any issues and come to a settlement that works for everyone. They can be less adversarial and less expensive than going to court.
Protect Your Privacy
High-asset divorces can attract a lot of attention; therefore, it is necessary to protect one’s privacy. Using a confidentiality agreement can help prevent sensitive information from becoming public. Sensitive information can include financial information, personal information, and details about the divorce.
Plan for the Future
It is critical to plan for the future after the divorce. A financial planner can help create a new budget, invest assets, and develop a retirement account. All of which help ensure long-term financial security.
While high-asset divorces may be complex and emotionally draining, employing the right strategies, can help you better navigate the process. Experienced professionals can help you by identifying all assets, helping you come to a settlement, and protecting one’s privacy.