Divorce is a difficult process. But it can be made even more difficult in spouses that have a high net worth due to additional factors that include differing forms of income, stock options, incentive packages, and often business ownership. Because of these things, high net worth divorces often need a different approach than the standard divorce process.
A DIFFERENT APPROACH TO HIGH NET WORTH DIVORCES
During the divorce process, it’s important to establish each spouse’s assets and properties. Each party is expected to disclose this information. Unfortunately, this can be difficult in some high net worth divorces. When this happens, an attorney needs to be able to uncover any hidden assets by employing a “different approach.”
TRACING AND ESTABLISHING COMMUNITY OR SEPARATE PROPERTY
Tracing allows an attorney to establish whise an asset or piece of property might be, as well as who has ownership of that asset or property. Establishing ownership allows an attorney to establish if the property or asset can be considered community or separate property. This division is important because once all assets and properties are determined community or separate they can be divided accordingly. A financial value is calculated, usually with the help of a financial advisor, and then it’s up to a mediator or judge to help determine the final settlement.
High net worth divorce cases can be difficult. When large amounts of money are involved, people can tend to be sneaky about retaining that money. Because of this, working with a high net worth divorce attorney can help you get a fair settlement. Additionally, there tends to be additional complications including the enforcement of prenuptial contracts, understanding estate parameters, as well as international or high net-worth investments.
Source: STG Law, Common Issues in High-Net Worth Divorces, 2014
San Diego, CA 92101
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