A high asset divorce is often considered one of the most difficult types of divorce. With more property to divide, more potential custody issues, and increased tax liabilities, a high asset divorce can be a daunting process. However, there are steps that you can take to help mitigate some of those challenges.
You can consult a Delawre high asset divorce attorney to analyze your case and obtain financial information to assist in your decision-making process. A divorce lawyer will have a better understanding of the process and will be able to properly advocate for you.
Let us now see into the main 5 challenges of a high asset divorce.
- A valuation of assets is necessary
The valuation of assets is necessary to determine the fair value of the property and determine the contribution to the marital estate of each spouse. It also plays a role in determining the property that needs to be kept separate from marital assets, as well as the recordation of those assets received during the marriage, which will affect the marital estate by providing an estimate of that indebtedness if the debt is not satisfied prior to closing. The valuation depends on whether there are disputes about what property belongs to who, how it was acquired, and any overlapping interests.
- Assets may be hidden
In a high asset divorce, there may be some assets hidden from a court. Most often this occurs when the property is transferred to the name of a person other than the owner or to an offshore account during the marriage. You should have documented proof of possible assets that may be hidden so that the court can understand where the money came from, who paid for it, and why.
- It takes more time
A high asset divorce case is more time-consuming than other types of cases. You may have to wait longer to receive a decision because a judge will have to divide more property. A judge may require more time to clarify certain issues. High asset divorces involve complex property division issues and the division of complex legal rights.
- Income may be erratic
Income may be erratic because of the nature of the business being in the field, or sometimes a spouse may be self-employed to avoid paying taxes on that income, so you would want to make sure if your lawyer will account for that during your proceedings.
- Determining the lifestyle isn’t easy
The lifestyle of a party is often the largest concern for a judge in deciding upon the property division. Lifestyle is fairly easy to determine when one spouse has been working during the marriage. But it can be more complicated if a spouse is self-employed or has been unemployed throughout the marriage.