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5 Types of Valuable Assets to Address in a High Net Worth Divorce

Posted on in High Asset Divorce

St. Charles IL divorce attorneyWhenever a couple chooses to end their marriage, they will need to address multiple legal and financial issues. High net worth divorce cases can be very complex, especially when it comes to the division of marital property. These couples will likely own multiple types of high-value assets, and as they determine how to divide these assets fairly, they will also need to understand the financial implications of the decisions they make.

Dividing High-Value Assets

During a high net worth divorce, couples will need to gain a full understanding of all of the assets they own, including marital assets acquired during their marriage and separate property each spouse owned before getting married. Assets that these couples need to address may include:

  • Jewelry, artwork, and collectibles - Certain items owned by a couple may have both financial and sentimental value. In many cases, appraisals may need to be performed to determine the value of these items and ensure that they can be divided fairly.

  • Investments - While determining the value of stocks or other investment assets may be fairly straightforward, couples should be aware of the tax consequences that come with selling these assets. Capital gains taxes may apply to these transactions, so investments may be worth somewhat less than their cash equivalents.

  • Family-owned businesses - If a family business was founded or acquired during a couple’s marriage, it will likely be considered marital property, and the spouses will need to determine how to handle ownership of the business going forward. A business owned by one spouse before getting married will usually not be part of the marital estate, but the business owner may be required to reimburse their spouse for any contributions that caused the business to increase in value during the marriage.

  • Real estate - In addition to their marital home, couples with a high net worth may own other real estate property such as vacation homes. When determining how to handle ownership of these properties, a home may need to be refinanced to remove one spouse from the mortgage and title. A couple may also choose to sell a property during their divorce and divide the profits earned. In these cases, they will need to be aware of the potential tax implications of the sale.

  • Retirement accounts and benefits - Retirement savings accounts in either spouse’s name can represent valuable investments that will provide financial security in the future. The funds in these accounts may be divided between the spouses, and when doing so, a qualified domestic relations order (QDRO) should be used to ensure that taxes and penalties will not apply. A QDRO may also be used to allocate a certain percentage of pension benefits that one spouse will receive upon retirement to their former partner.

Contact Our Kane County High Net Worth Divorce Attorneys

At Goostree Law Group, we can help you understand the financial issues that you will need to address during your divorce. We will advocate for your interests and help you reach a divorce settlement that will allow you to move forward with your life and maintain financial security. Contact our St. Charles high asset divorce lawyers today by calling 630-584-4800 to set up a complimentary consultation.

 

Sources:

https://www.cnbc.com/2020/12/10/avoid-these-mistakes-when-splitting-assets-in-a-divorce.html

https://www.forbes.com/sites/russalanprince/2015/09/22/when-the-wealthy-divorce-they-regularly-engage-forensic-accountants/?sh=1fa2590a588d

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

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