Concerns in a High Asset Divorce
On the surface, a high asset divorce may seem easier than a regular divorce. There’s a lot more money involved, so each spouse can take a huge chunk and move on, right? Not exactly. In fact, these divorces are often more complex because there are many more assets involved and they need to be split up fairly.
In many high asset divorces, businesses and investments are involved, which means all assets have to be thoroughly reviewed. Overlooking any asset could make the outcome unfair. Also, in many of these divorces, prenuptial agreements are involved. It is important to ensure the agreement is valid.
Read on to learn about the common concerns in a high asset divorce and how they can be resolved.
Florida is an equitable distribution state. All assets and liabilities need to be identified and classified as separate or marital. Assets that a person had before marriage are not split in a divorce unless they are commingled. For example, using the money you had before marriage to buy your wife a car now makes the car marital property.
Businesses are a part of many high asset divorces. An appraiser can help determine the value of a business. All assets and liabilities will be taken into consideration.
Investments are also common. A person worth $5 million does not simply have that much cash in a bank account. Some invest in other businesses or have stocks or bonds. Some have retirement accounts or multiple properties.
Determining monthly child support can be confusing, as high earners do not typically follow the traditional guidelines. Instead, child support is based on the parents’ abilities to provide financial support as well as the child’s needs. For example, wealthy families may have expenses such as private school tuition, college tuition and nannies. However, it is important to understand that custody is not given to the higher-earning parent.
Avoiding a Nasty Divorce
In a high asset divorce, there is a propensity for there to be conflicts due to the number of assets involved. Here are some ways to avoid stress and resolve the divorce quickly:
- Stay focused. What are your goals? Keep in mind that you won’t get everything you want in a divorce, so compromise with an open mind. Think about your family and keep your work and divorce separate. Avoid having your divorce take over every aspect of your life.
- Assemble a team. High net work divorces are complex. Besides a lawyer, you will need a CPA, financial expert, estate planning attorney, business valuations expert, appraiser and maybe even a therapist. These experts will help take care of your assets.
- Know when to settle. Negotiations can only go on for so long before you feel drained. Try to keep the proceeding amicable and not acrimonious. Going to court can be very expensive and time-consuming, so know when to take the high road and settle.
Seek Legal Help
A high asset divorce comes with more complexities than the typical divorce. Asset division, alimony and child support are just a couple points of contention.
If you’re considering divorce and there is a significant amount of money and other assets at stake, make sure you understand your legal rights. Fort Lauderdale family lawyer Edward J. Jennings, P.A. can help you make the right decisions. Schedule a consultation by calling 954-764-4330 or filling out the online form.