Defending Your Future Through A High-Asset Divorce
When a divorcing couple shares a considerable amount of assets between them, the resulting divorce process can become especially complicated and heated. But this is not the time to let your emotions flare, nor to risk your ability to get your fair share by hiring a lawyer who is not experienced with high net worth divorces. Make sure you are protecting your best interests with the guidance of a skilled family law attorney.
Accounting For All Assets
In high-asset divorces, there is a lot that we need to account for. With our extensive experience in these cases and our knowledge of what to look for, we can help clients divide complex assets such as:
- Retirement accounts
- Stock Options
- Deferred Compensation
- Financial accounts
- Real estate, such as primary, secondary and vacation homes
- Recreational vehicles
- Business Interests
- Trust Funds
- Real Estate Partnerships
We pride ourselves on taking a preemptive approach in our work, so we can resolve issues in a divorce before they present themselves. This method of preparing for anything is especially beneficial for our clients who are business owners.
Why Is A High-Asset Divorce More Expensive Than An Average Divorce?
Divorce can be expensive, and high net worth divorces are especially so. There are several reasons this is generally true, including:
- The complexity of the financial portfolios involved
- The need for expert guidance from financial analysts, tax advisors and business valuation experts
- A longer discovery process is needed for true financial disclosure
Emotional factors, too, can lead to more contentious negotiations, which further drives up the overall cost of a divorce.
How Long Does A High-Asset Divorce Typically Take To Settle?
The duration of a high-asset divorce can vary significantly depending on the complexity of the assets involved and the level of cooperation between the two parties. In general, high-asset divorces tend to take longer to settle compared to divorces with fewer assets, often extending into months or even years. Premarital and post-marital agreements, compromise, negotiations and mediation can all help reduce the timeline.
Why Is It Important To Keep Track Of Finances During A High-Asset Divorce?
First, a comprehensive understanding of your financial situation is necessary for equitable asset division. Good records make it easier to make sure that both parties are treated fairly. Additionally, accurate financial records can help ensure that all marital assets and income are properly accounted for, reducing the risk of hidden assets or financial discrepancies that might create conflicts.
What Are The Tax Implications Of A High-Asset Divorce?
Tax implications are significant in high-asset divorces because the net worth of an asset can change once taxes are involved. Asset division, alimony and other financial decisions can have unexpected tax consequences. It’s essential to work with financial and legal professionals to navigate these high net worth complexities and make informed decisions that minimize tax liabilities for both parties so that there is more to divide.
How Is Property Divided In A High-Asset Divorce, And What Is The Difference Between Separate And Marital Property?
During a divorce, all of a couple’s assets and debts have to first be classified as either marital or separate property. Marital property includes any assets acquired during the marriage, all of which are subject to equitable distribution. Separate property, on the other hand, generally includes assets acquired either before the marriage, through inheritance or as gifts. It can also include assets that were “carved out” as separate property through premarital and post-marital agreements.
What Is Transmutation, And How Can It Affect The Division Of Property In A High-Asset Divorce?
Transmutation refers to the process by which separate property can be transformed into marital property through actions such as commingling or changing the title. For example, an inheritance received by one spouse would be considered their separate property – but if they put it in a bank account with their spouse as co-owner, that inheritance might then become marital property. Understanding transmutation is crucial because it can affect the classification and division of assets in a high-asset divorce, and it can affect real estate, investments and more.
Is Mediation A Good Option For High-Asset Divorce Cases, And Why?
No matter what your net worth is, mediation can be a viable option. In fact, it may be the best option for high-asset divorces because it helps prevent the marital assets from being depleted through extensive litigation. Mediation allows the parties to work together, with the assistance of a neutral mediator, to reach mutually acceptable agreements on everything from asset and debt division to spousal support. Not only is mediation a cost-effective and less adversarial process than litigation, but it can also help preserve the privacy of the people involved, which many high net worth couples appreciate.
The Benefits Of Our Representation
Part of pursuing a favorable outcome in a divorce includes knowing all the information. An essential piece of information in high-asset property division situations is the accurate valuation of assets, especially businesses. Before our family law team begins negotiating or litigating for your share of a business, we need to be sure we know what your business is worth and what goals you have for your business.
Typically, a business will exit a divorce in one of three ways: co-ownership, buyout or total sale. Once we weigh your options with you, we will develop a personalized representation strategy that can help us pursue your goals for you and your business in your divorce.
Be Prepared For Your Divorce
Even when couples try to pursue an amicable divorce, both parties should have an attorney looking after their respective best interests. Don’t rely on an attorney who doesn’t have ample experience in the complexities of high-asset divorce; let us guide the way for you.
At Callahan | Barraco, the attorneys on our team have more than 100 years of combined experience representing the needs of our clients throughout their family law challenges across Massachusetts and beyond. We take a meticulous and dedicated approach to our work to ensure we are putting our client’s needs first while anticipating potential difficulties before they become problems.
We have offices in Massachusetts, New Hampshire and Rhode Island. If you are ready to meet with our lawyers, call us at 508-271-7963 or email us here to schedule your initial consultation today.