Divorce and Wealth: What You Should Know
Apr 30, 2019
When all is said and done, the dissolution of a marriage is much like ending a business contract. When a couple divorces, part of the process is to identify and divide the marital assets among both parties of the marriage.
If you and your spouse have a high net worth and a substantial financial portfolio, the asset division process becomes more complex and time consuming. Some divorces with many assets can take months or even years to fully settle. The following are some different ways wealth contributes to the complexity of divorce.
Do You Have Prenuptial or Postnuptial Agreements?
Before anything happens with assets, you first need to address any marital agreements you made. A prenuptial agreement is something you and your spouse agree to before your marriage. The agreement outlines who is bringing what into the marriage and addresses what will happen to certain assets should the marriage end. A postnuptial agreement is similar but signed after marriage.
If you have either of these agreements in place, your attorneys will use it as a starting point on how to divide the assets between you. Keep in mind, however, you or your spouse can challenge a marital agreement in court if either party does not believe the agreement is enforceable.
What Types of Wealth Do You Own?
Wealth in a marriage can be in a variety of forms. If you own a company, much of your personal wealth is tied in to your business finances. Other types of wealth include investments, residential or commercial property, intellectual property, high-value collections, international holdings, and the like.
These assets have to be valued and traced. This means you have to involve a variety of professional and legal experts to help fully determine your wealth before the process of asset division can move forward in court.
What Types of Experts Are Necessary?
Depending on the different types of wealth you both own, you may need to employ a variety of different professionals to fully gauge who is entitled to each portion of wealth in your marriage. You will definitely need an accountant and tax professional. You may also need a forensic accountant, particularly if you believe some assets to be hidden from you.
You may also need the expertise of an appraiser for different types of property or collections. For instance, if you own a fine art collection, an art appraiser will provide you an estimated valuation for the collection so you each receive equitable value.
How Is Spousal Maintenance Decided?
Another issue to contend with is spousal maintenance, also known as alimony. Although spousal maintenance is common in all types of divorces, those with higher wealth have to take many factors into consideration when determining the final figure.
For example, if one of you will maintain control over your business, the other could need a higher amount of spousal maintenances to offset the valuation of the business.
Do You Have Privacy Protection?
Although many divorces are not objects for spectators, high-wealth divorces can attract more attention. For this reason, you should have some privacy protections in place. You have several legal options to keep your divorce details private if you settle out of court. However, if you take the divorce through litigation, the details of your divorce are more likely to become public.
Are You Prepared for Disputes?
When you have a high-wealth divorce, the likelihood of contention between you and your spouse is increased. This means your divorce will take longer to settle until you can both come to a variety of agreements on your various financial holdings. Disputes will also add to your overall divorce expenses.
If you have any questions about your divorce or need assistance with your case, please contact Budget Divorce Center.
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