Most divorces are contentious. Divorcing spouses, often extremely hurt, angry, frustrated, and disappointed, want a fast resolution. High asset divorces with millions, even billions, of dollars involved bring layers of added complexity and can ratchet up the drama considerably. In these divorces, even a small financial error can cost either party a significant amount in calculating a settlement. It is critical to hire an experienced attorney to guide you through the negotiations with a strategic approach that will leave you financially secure and satisfied with the resolution of your divorce.
The issue of valuation of assets can also be quite contentious. According to Forbes magazine, in a high asset divorce the spouses’ attorneys can hire a valuation expert, a qualified professional who can accurately determine the worth of a divorcing couple’s assets, such as a privately held company. More specialized experts may be required for handling investments. And what about life insurance? “Many affluent individuals have accumulated significant value in their life insurance without their spouse ever being fully aware, not because they were intentionally misleading, but because it just wasn’t on the radar,” Frank Seneco of Seneco & Associates told Forbes.
An experienced divorce attorney will caution you against errors of judgment that can jeopardize a fair division of assets. These include being in too much of a hurry, to unload your spouse or, in some cases, to be free to marry a new love. You may agree in your haste to terms that will cost you years of financial regret. Don’t cut corners: you’re going to have to live with the results.
Although nothing feels more personal than your divorce, you will benefit from treating it like the division of a business; otherwise, feelings of guilt may make you waive assets that you might have successfully claimed, warns a contributor to CNN iReport. And don’t yield to the temptation to conceal assets, e.g., by assigning them to a cooperative third party. In many cases, one partner controls the family financial situation, while the other is unaware of the details. When this kind of inequality exists in a high net worth divorce, it can be tempting and relatively easy to hide income and assets. Any action you take that is perceived as fraudulent, however, will wreck your credibility in court.
“Lifestyle” is another consideration in a high asset divorce. Especially when one spouse is a high earner and the other is not, “the cost of maintaining a lifestyle is frequently discussed, but often not treated with the gravity and financial acumen it deserves” (Forbes). A fair resolution may require forensic accounting of how and where money was being spent during the marriage.
Of course, the negotiation of your high asset divorce will depend on whether you are in a community property state or not. Most states are community property, meaning that property acquired during the marriage, excepting gifts or inheritances, is owned jointly by both spouses and must be divided into equal halves. If your state is not community property, personal or real property will be divided equitably, and the outcome may be different.
The seasoned family law and divorce lawyers at the McGrath Law Firm, founded by attorney Peter McGrath, will walk you through every step of the challenging divorce process to address your concerns and achieve your goals as efficiently as possible. From spousal support, child support, fault, and equitable division of property and debt to valuations, pre-nuptial agreements, and restraining orders, the experienced attorneys at McGrath Law Firm have a successful track record in all aspects of divorce law. Call us to schedule your consultation at (800) 283-1380.
