7 Things to Know about High-Asset Divorce
Posted on February 17th, 2022 in Divorce
A high-asset divorce, or a high net worth divorce, generally involves significant and high-value assets such as closely-held business interests, stock options, deferred compensation, trust funds, real estate partnerships, and so on. Understandably, the more assets involved, the more complex the divorce will be.
Due to the complexities involved in a high-asset divorce, it is important to know about the following factors so you can make the most informed decisions:
It’s More Expensive than Average Divorce
A high-asset divorce costs more than an average divorce for obvious reasons. Typically, a high-asset divorce doesn’t consider only how much money you have, but also on marital property that has a high valuation. Hence, a high-asset divorce may include multiple high net worth assets, such as several houses, business assets, or other types of financial assets.
Having an experienced family lawyer on your side is essential during this process. They’ll work to protect your best interests, and ensure a fair and stress-free legal process.
It Takes Longer
It may take your high-asset divorce attorney some time to accurately calculate the value of the assets involved in your divorce. This is the main reason why this type of divorce takes longer to settle.
If you’re going through a high-asset divorce, make sure you understand this and remain patient. Hurrying the process can cost you. In fact, you could end up losing assets that rightfully belong to you.
It’s Crucial to Keep Your Finances in Check
Consult any high-asset divorce lawyer and they’ll recommend taking stock of your finances as one of the first steps in your case. This is crucial because the court will intricately examine your financial documents before making a decision.
It isn’t uncommon for people to have trouble collating the financial details of their assets. The pressure can build up since this process needs to be completed within a certain timeframe. Getting this right, however, is important. It is best to work with a seasoned high-asset divorce attorney to organize your finances.
Have all your financial documents ready before the proceedings begin so you get a head start. Presenting your details clearly will portray you as an honest and responsible person, which could work in your favor.
It Will Likely Impact Your Taxes
Whether you’re going through a regular or high-asset divorce, you’ll have to take the tax implications into consideration. You’ll need to pay taxes on your marital assets, some of which may attract an excessive amount.
This is why it is better for wealthy couples to be clear on the potential tax consequences of their divorce, especially since it comes with several advantages and disadvantages. For example, assets can be transferred tax-free between spouses during a divorce.
However, if you’re unaware of how the process works, you might end up paying considerably more than you were planning to. An experienced high-asset divorce lawyer will help you understand how and when to tweak your strategy as the tax codes change. This will help you avoid paying more tax.
Property Division May Be Complex
A major aspect of a high-asset divorce is distinguishing between separate property and marital property. Typically, any property earned during the marriage is classified as marital property and will be subject to equal ownership by both parties. However, if any one of the spouses inherits any money during the marriage, it will be considered separate property, and won’t be divisible in the divorce.
This may seem pretty straightforward until “transmutation” comes into the picture. Transmutation allows separate property to be considered as marital property by co-mingling both types of properties. As a result, separate property may be subject to division as well.
Mediation Is Usually the Best Way to Deal with It
Because any case handled by courts becomes a matter of public record, high net worth couples who want to keep their divorce proceedings private may use mediation for their high-asset divorce settlement. Further, this type of dispute resolution method is faster than the usual trial process and allows couples to arrive at important decisions themselves.
This doesn’t mean that mediation is any less complicated. It takes thorough planning and organization to achieve the desired results, which is why you should seek strong legal representation from a reputed high-asset divorce law firm.
It Helps to Work with a High-Asset Divorce Attorney
As mentioned, high-asset divorces generally involve multiple valuable properties, business assets, stock holdings, retirement savings, and more. To ensure fair proceedings, it is recommended to contact an attorney from a proven local divorce law firm.
We will ensure that you’re aware of all the assets as well as your eligibilities and entitlements. We’ll keep you apprised of which state laws apply to your specific case and devise a strategy accordingly.
In some cases, there may be business assets that need to be valued and even sold. In other cases, one party may not be transparent in declaring their assets. Hiring a lawyer who understands how business assets are accounted for can be crucial. They’ll also be able to connect you with forensic accountants who are experts in recreating a spouse’s financial position using bare minimum information.
In short, having an experienced high-asset divorce attorney in your corner can be extremely beneficial to your case.
Contact Kalinoski Law Offices Today
High-asset divorce cases can be complicated and require considerable preparation and planning. The more prepared you are, the better results you can expect.
Engaging a well-practiced lawyer from a reliable Pennsylvania high-asset divorce law firm can go a long way in helping you save time and money, as well as spare you a lot of stress.
If you need the assistance of a trustworthy high-asset divorce lawyer in your case, Kalinoski Law Offices is here for you. Attorney Craig Kalinoski will leave no stone unturned in safeguarding your best interests in this complicated process. Call us today or fill out our online contact form to schedule your free initial consultation.