The Assets That Create Challenges
High-asset divorce can bring many unique challenges, and part of those challenges can be found in the assets themselves. High-asset divorces often involve more complex assets than those that can be found in a more “traditional” divorce, and those assets bring with them complications that must be solved.
Here are several assets that are commonly found in high-asset divorces.
Many people who go through a high-asset divorce own a business or a private practice, and owning a business while going through a divorce can add complexity to an already challenging process. Depending on when the business was acquired, it could be up for division in a divorce.
However, one of the biggest difficulties involves determining an accurate value of the business. Determining how much a business is worth can take multiple forms, from totaling the value of the business’ assets to comparing the business to others in the fluctuating market. Once that value is determined, settlement negotiations related to the business can be tense.
While many divorces involve what happens to the family home, a high-asset divorce typically involves more pieces of real estate beyond where the family lived. A high-asset divorce can deal with condominiums, investment properties, vacation homes, and properties rented out to others. Beyond the number and types of real estate, however, is the valuation; the housing market changes relatively consistently, so placing a set value can be difficult.
Stocks and Investments
It’s very common to see stocks and investments play a role in a high-asset divorce. Similar to the above-mentioned assets, accurate valuation of these assets is difficult due to the constant shift in the market value. A stock could be worth one amount one moment and either increase or decrease in value the next. In addition, should any of these assets be divided in the divorce, transfer of ownership can be challenging.
The world is becoming more reliant on technology, and digital assets such as cryptocurrencies and NFTs are on the rise in popularity among investors of all kinds. These assets create very unique challenges since they are intangible; transferring these assets requires digital wallets, access to passwords, and an understanding of digital privacy laws.
The Difference of a High-Asset Divorce Attorney
When going through a high-asset divorce, not just any attorney will do; it takes the experience and knowledge of an attorney who understands the complexities of high-asset divorce and who knows how to work through the challenges surrounding each of these assets. When preparing to go through a high-asset divorce, be sure you have experience on your side.