How High-Asset Divorces Impact Your Investments

Divorces present many challenges for those involved; however, these challenges can be much more complex if there are very valuable assets present between the two individuals in the divorce. High-asset divorces can involve the engagement of various professionals throughout the process, including financial advisors, accountants, and appraisers.  All of these experts can be very expensive. Most importantly, hiring an attorney who specializes in high net-worth divorces is crucial for making the process as smooth and fair as possible, as not all attorneys understand the complexities of high-asset divorces.

Spouses with many assets of high value may experience challenges with such issues as depreciation, loss of value, or other taxes and liabilities. Protecting yourself and your assets is important, making it crucial to understand the complexities and how to effectively navigate a divorce when you have significant wealth.

What is a High-Asset Divorce?

A high-asset divorce refers to a divorce where there exists significant wealth in the form of assets and investments.  This leads to a matter which requires extra attention and consideration in the process of distribution between the parties. High-asset divorces may include various possessions of value that comprise a high net worth, including but not limited to large real estate holdings, investments, retirement accounts and pension plans, intellectual property rights, valuables and luxury assets, and businesses.

Important Points to Consider in a High-Asset Divorce

Typically, a division of assets involves the division of homes, vehicles, and bank accounts, but in a high asset divorce, the pool of assets both as to value and the types of assets may be much larger, meaning the division can take more time and require greater contemplation of the fairest scenario. Transparency in financial disclosures is much more critical in a high-asset divorce to achieve an appropriate division pertaining to all assets.

Spouses’ assets are defined as marital or non-marital during court proceedings in a divorce. For instance, a property acquired during a marriage can be considered a marital asset, while a property acquired with an inheritance or non-marital funds may be considered a non-marital asset. Differentiating between these is essential in establishing a fair distribution of assets during a divorce.

The terms of existing prenuptial or postnuptial agreements is also a key component in a high-asset divorce. These agreements may alleviate some of the division of assets during the process, or they may complicate matters if a spouse believes that the premise of the agreement does not apply anymore for some reason.

Discussing matters with your spouse to achieve a resolution without costly and time consuming litigation can be carried out through various methods such as negotiation, mediation, and arbitration. Understanding the differences between each process and figuring out how you want to resolve financial disputes is also important in this process.

Contact Us for Help From a High-Asset Divorce Attorney

It is essential to protect yourself, your finances, and the future for you and your family during a high-asset divorce. If you and your partner have substantial assets and are going through a divorce, seeking specialized legal advice to navigate this process is essential. Contact Moskowitz Law Group to schedule your consultation. We want to ensure that you have the support you need during this difficult time.