Even under the best of circumstances, the divorce process can be complicated, emotional, and often contentious. Divorce among the wealthy comes with a unique set of challenges, particularly when it comes to the division of assets. Oftentimes, both parties let emotions get in the way, resulting in financial errors that can affect the outcome of the settlement.
In a high-asset divorce, it is very common that one spouse is more prepared than the other. When that person is also the main source of the wealth, that individual may take steps towards protecting assets and estimations of family wealth. While there are legitimate asset protection plans, sometimes the moneyed spouse will use tactics intended to hide assets from the other spouse. While this is not uncommon, the moneyed spouse should realize that the benefits do not outweigh the risks. There are specific methodologies in place to spot red flags. Hidden assets are almost always discovered and efforts to hide money can make negotiations much more complicated and call into question a spouse’s credibility.
One way to avoid some of these pitfalls is to hire a valuation expert who can objectively assess the couple’s financial holdings based on specific metrics and methodologies. When assets like stocks are split between a corporate CEO and his or her spouse, all contingencies around distribution, transfers of ownership and sales should be evaluated as part of the process. A financial expert can provide valuable insight and experience that can help divorce lawyers and their clients successfully and seamlessly navigate the intricate details of a high-value, complex portfolio.
Life insurance is another significant source of income that is often misunderstood or overlooked. For example, wealthy individuals often accumulate significant value in their life insurance policies. But because many people view life insurance more like their automobile or homeowner’s insurance, it’s not viewed as an asset. For this reason, many high asset divorce cases often retain someone with extensive knowledge of both trust and insurance. This will ultimately help determine current values and put a plan into place for how policies should be equitably divided.
Another significant component of a high asset divorce is lifestyle. While this may not sound like a crucial component of divorce, the cost of maintaining a certain lifestyle for both parties is an important issue to address. A financial expert can conduct a detailed account of how and where money was spent during the marriage. This can help both parties reach a fair outcome, particularly when it comes to property division and spousal support.
Bel Air Divorce Lawyers at Huesman, Jones and Miles, LLC Help High Asset Divorce Clients throughout Maryland
At Huesman, Jones & Miles, LLC, our compassionate and dedicated Bel Air divorce lawyers understand that the divorce process can be stressful to all parties involved. With sensitivity and professionalism, our experienced team of Baltimore divorce lawyers will work with individuals to reach the most favorable financial outcomes. We serve clients throughout the greater Baltimore area including those in Baltimore County, Carroll County, Harford County and Howard County as well as residents of Towson, Bel Air, Colombia, Westminster and Essex. To schedule your free confidential consultation today, call us at 443-589-0150 or submit an online inquiry form.