For a high asset divorce to run smoothly, both parties must be patient. Both parties should realize that the process takes time, and there may be hiccups along the way, so it is best to be on alert and stay prepared. It is crucial that the client and their lawyer share all relevant information. The divorce case should be reviewed thoroughly, especially since it involves large amounts of money.
If children are involved, the parents should remember to put them and their needs first. When it comes to divorce, no matter the age, all children can be affected. Parents have to recognize the impact a divorce has on everyone. Additionally, children should not be used to cause distress to the other party to further complicate divorce matters.
Both parents should be transparent throughout the entire divorce process. During high asset divorces, couples tend to carry finances of high-net-worth, which are not easily trackable. This process will take time. Obstructions, such as hiding assets, not submitting documents, and committing fraud, will only cost more money and prolong the process. If couples commit to transparency from the beginning, then most issues can be avoided. Most lawyers inform their clients that remaining civil benefits everyone involved.
When both parties accept that they want to move forward with a divorce, it is favorable to hire legal representation early in the process. Lawyers will ask that their clients be prepared, ask for help or court assistance, and seek aid from council to work out arrangements. By instilling a separation agreement, it can make everything run smoothly. This shows that both parties are committed to the divorce process. This also shows that both parties are willing to listen to the guidance of divorce lawyers. Lawyers understand how important it is to keep a family working together.
How are Marital Assets Split in High Asset Divorces?
When deciding on how marital property should be split, some factors to consider are the length of marriage and the needs of both individuals and children. Tracing property that a spouse brought into the marriage and contribution from each spouse during the marriage are also important considerations.
An equitable distribution of marital property does not necessarily mean an equal split. Some assets that might be considered as marital property include:
- Business assets
- Partnerships, practices, and trusts
- 401(k) plans
- Retirement plans
- Family homes and rentals
- Vacation timeshares
Any business assets acquired during the marriage are typically considered to be owned by both parties, except in certain circumstances.
How Do I Determine the Value of My Assets?
Forensic accountants will determine how business assets were treated to establish their values. If the information is not submitted in full or correctly, the party can be subject to an investigation by the Internal Revenue Service (IRS). If both parties own a shared business, then a shareholders’ agreement can be drafted that states both of the parties’ interests in the business. Individuals with significant assets face more challenges, such as tax implications and asset tracing.
The high-earning spouse in the family might believe that they should keep most of the assets after a divorce, but the financially dependent spouse may need more assets to secure their future. In any divorce case, both parties should be realistic because asset division is in the hands of the courts. The spouses should be prepared. A lawyer with experience can develop a strategy to produce the best case to submit to the courts and guide their client through the process.
Each party should prepare for settlement negotiations. It is important to consult a financial planner to see what one’s needs are now and through retirement. It is also vital to know all probable outcomes and risks.
What Happens When Hidden Assets Come to the Surface?
Lawyers stress that their clients take an inventory of their assets and the values of each asset. It is recommended that clients take pictures and even have monthly statements. To avoid an accusation, it is helpful to create a digital file and record account numbers in a secure place. If the spouse brought assets into the marriage, trace them to the determine if it was integrated into marital assets.
What Should I Avoid Doing in a High Asset Divorce?
It is favorable to avoid making rash decisions in a divorce. It is important to avoid doing the following in a high asset divorce:
- Not taking inventory of all assets when beginning the divorce process.
- Allowing anger to influence decisions.
- Hiding assets.
- Not taking steps to protect assets.
It is also harmful to the clients to ignore tax implications that may create more complications later on. During a high asset divorce, many problems can arise. For this reason, it is crucial to speak to a lawyer as soon as possible. A lawyer will help establish the marital assets, and they will protect the rights of the client and help them get the best possible outcome in their case.
Towson Divorce Lawyers at Huesman, Jones and Miles, LLC Help High-Net-Worth Clients Solve Complicated Divorce Matters
The Towson divorce lawyers at Huesman, Jones and Miles, LLC strive to solve all disputes in a calm and professional manner for clients involved in high asset divorces. Our legal team understands that high asset divorces are complex, and we can address your concerns. Complete our online form or call us at 443-589-0150 for a free consultation. We are located in Hunt Valley and Towson, Maryland, and we serve clients throughout Baltimore, Baltimore County, Bel Air, Bentley Springs, Columbia, Freeland, Hereford, Hampton, Westminster, Essex, Monkton, Sparks Glencoe, Parkton, Phoenix, Pikesville, White Hall, Carroll County, Harford County, and Howard County.