What Makes High Net Worth Divorces So Complex?
In any divorce, there are a wide variety of complicated issues that must be addressed and resolved, and disputes over child custody, child support and property division can make emotions run high. However, there are some divorce cases that have all of these issues and even more. High net worth divorces can be extremely complex, since they will have the same issues as any other divorce, along with additional factors that can make resolving these cases more challenging. These factors may include:
The Scope of Assets
Typically, there are many assets in a high net worth divorce, and determining how to divide marital property can be difficult, especially when this property includes assets such as real estate, investments and retirement accounts. An asset acquired before the marriage will typically be considered separate property that is not divided during the divorce process. However, if a non-marital asset appreciated in value during the marriage, the courts may view this appreciation as marital property. Determining what assets are considered marital property and how to divide them fairly and equitably during divorce can be a complicated undertaking.
A high net worth divorce may involve a business that is owned by one or both spouses. The divorcing couple must decide if they want to keep the business, sell it or if one partner wants to buy the other out. If the spouses continue to share ownership of the business after divorce, their ability to work together can directly impact business operations. Determining the value of a business and addressing how to fairly divide business interests is often one of the most complex issues that must be addressed during divorce.
Spouses may try to hide assets from each other during a high net worth divorce. When one spouse suspects this is happening, the assistance of a forensic accountant may be required to uncover any concealed assets. During this process, the accountant will investigate the assets and financial holdings of both spouses and may be able to help determine whether assets are considered marital or separate property.
When property is divided between spouses during divorce, even a high net worth divorce, these transfers are typically not a taxable event. However, in some high net worth divorce cases, spouses may sell assets such as business interests or real estate, and these may be taxable events that will require both spouses to pay capital gains taxes. Before making decisions about property, spouses should be sure to understand how these taxes will affect their finances.
Contact an Experienced Rolling Meadows High Net Worth Divorce Attorney
Divorce is rarely easy. However, divorces involving a high net worth can be some of the most complicated cases. Anyone going through this type of divorce should speak to an experienced divorce lawyer to determine the best ways to protect their financial stability. Dedicated Palatine divorce lawyer Nicholas W. Richardson Attorney Richardson has the experience high net worth divorces demand. After reviewing the facts of your case, he will fully explain your rights and your options under Illinois law. Contact us today at 847.873.6741 to schedule a free consultation.