Facts about high asset divorces

Facts about high asset divorces

On Behalf of | Jan 20, 2023 | Divorce |

High-asset divorces involve large amounts of assets, such as businesses, stocks, incomes, trust funds and real estate. Since these divorces involve more items, you can expect them to be more complex.

Because these divorces are so complex, you should know some basic facts about them before starting your own.

They cost more

High-asset divorces cost more. That is because the court, your representation, and you must consider your finances and marital property. Anything with a high value, such as your homes, businesses and bank accounts, is subject to divorce, which will take more time and cost you more money.

They take longer

As mentioned, tallying up your assets and dividing them will take some time. Therefore, the process can take longer.

Your finances must be in order

The first thing you should do in a high-asset divorce is to take stock of all your assets. That can be helpful when the court scrutinizes your finances to determine what belongs to you.

Your taxes will be a hit

In a high-asset divorce, you must consider taxes. In this type of divorce, you must pay taxes for your marital property, which can add an unexpected burden to your financial plan.

Property division is the same

Property division still is a significant area of contention in high-asset divorces. Generally, the court considers property acquired during the marriage as marital and subjects it to equal ownership rights. Meanwhile, the court deems anything from before your wedding or inheritances gifted to one spouse as separate property.

Undertaking a high-asset divorce is a complex procedure requiring much planning. However, you can expect better results if you are adequately prepared for the situation.