The current divorce rate in the US is 2.3 per 1,000 people. Getting divorced can be a lengthy and challenging process, but sometimes it’s necessary. It’s important to note that not all divorces are the same, and a high-asset divorce can consist of various elements that don’t factor into a standard divorce.
In this guide, we’ll cover everything you need to know about high-asset divorces. Keep reading for more.
What Is High-Asset Divorce?
When a divorce involves over $1,000,000 in liquid assets, it’s considered high-asset. Note that this doesn’t include commercial or residential real estate or closely-held businesses. While these aren’t included in the figure, they’re still likely to be discussed and distributed during the divorce proceedings.
What Are the Top Concerns in a High-Asset Divorce?
In any divorce, there will be many concerns. High-asset divorces tend to present some unique challenges, so it’s important to have an idea of what these are.
Higher Cost Compared To Typical Divorces
In almost all cases, a high-asset divorce will cost more than a regular divorce. This is both because of the amount of money involved as well as the marital property, which also has a high value.
There are likely to be various high-net-worth assets such as homes, business assets, and more. Since you want to protect your best interests, it’s crucial that you have an experienced family lawyer helping you. They’ll make sure you get your fair share of the assets while keeping the entire process as stress-free as possible.
They Can Take a Long Time
Due to the assets involved, it can take a divorce attorney some time to calculate the value of everything. Bear this in mind when going into a high-asset divorce – you must be patient and give them time to organize everything. Trying to get them to rush things could result in you losing assets that you have a right to, so it’s best to let things play out at a manageable speed.
You Must Keep Your Finances in Check
Any divorce lawyer will tell you that you should make sure you’re properly managing your finances before going into a high-asset divorce. The court will closely examine your financial documents, so you want them to be in order before they make a decision.
Many people find it challenging to get all their financial details together. Since this needs to be done within a specified timeframe, it could be an issue. It’s definitely worth working with an experienced attorney to ensure this is done correctly.
Having your details in order and clearly presented will put you in a good position when the proceedings start. It will show that you’re responsible and honest, which can help you throughout the divorce.
It May Impact Your Taxes
Any kind of divorce – whether it’s high-asset or otherwise – will have tax implications. There will be taxes to pay on marital assets, and depending on what these assets are, you may have to pay a sizable amount.
If you have a lot of high-value assets, you and your partner want to be clear on the tax implications you’ll need to deal with. Having a good understanding ahead of time could help you both save money. An example of this would be by transferring assets during the divorce, which can be done tax-free.
Many couples go into things without knowing how the process works. As a result, they often end up paying large sums that they may not have had to. A divorce lawyer will be able to help you with this, showing you how to adjust your strategy to best align with tax codes, resulting in you paying less overall.
Property Division Can Be Complicated
Asset distribution is one of the most important elements of any divorce, especially a high-value one. A key part of this is differentiating between marital property and separate property.
Marital property is typically any asset gained during the marriage, resulting in equal ownership. An example of this would be a house that the two have bought together.
Any money that one party inherits during the marriage is considered separate property so that it won’t be disputed in the divorce agreement. This is often straightforward, but “transmutation” can make things more complicated.
Transmutation can comingle the two types of property. This may result in separate property then being considered marital property. At this point, the separate property involved could become divisible.
Mediation Is Ideal
There’s a good chance that you’d prefer to keep your divorce proceedings private. When going through a court, your case will become a matter of public record. You can use mediation to avoid this.
On top of keeping things private, this is often a faster process than going through a court. You and the other party can make important decisions between you rather than needing a judge.
It’s worth noting that mediation can still be just as complicated. It involves a lot of planning and organization to get through it. As such, you want to make sure you have an experienced divorce lawyer helping you out all the way.
Dealing With Your High-Asset Divorce
Regardless of how you choose to do things, going through a high-asset divorce takes time, and things will get complicated. Having a knowledgeable divorce lawyer is the best way to ensure things are handled properly, and your best interests are protected.
Boyer Law Firm has a team of lawyers that specialize in family law, covering divorces, custody, marital contracts, and more. Visit our Family Law Services page to find out more about how we can help you with and if you have any question Shoot us a message using our online contact form, or get in touch at (904)236-5317.
