5 Types of Assets You May Need to Address in a High Net Worth Divorce

 Posted on April 19, 2023 in Family Law

Divorce can be a complicated and emotionally taxing process for anyone, but the process of dissolving a marriage can be even more complex for couples with a high net worth. Divorcing spouses with substantial assets must take special care to ensure that all marital property is accounted for and divided fairly. With the assistance of attorneys and financial experts who can help identify and determine the value of all relevant assets, a couple can work toward a fair and equitable distribution of marital property, ensuring that both parties can move forward with their lives with confidence and peace of mind.

Valuable Assets to Consider During the Divorce Process

Couples with a high net worth may own multiple different types of property, including:

• Real estate: For many married couples, real estate property is among their most significant assets. This property may include a family's primary residence, vacation homes, or investment properties. It is crucial to get an accurate valuation of the properties owned by a couple, as well as properties owned separately by either spouse before getting married. If one spouse will maintain sole ownership of a property, they may need to have it retitled in their name, and the mortgage may need to be refinanced. Alternatively, spouses may choose to sell a home or other properties during the divorce process and divide the profits earned from the sale.

• Business interests: Family businesses and other types of business investments can be challenging assets to divide in a divorce. Depending on when a business was founded or acquired, it may be considered a marital asset or separate property owned by one spouse. In most cases, a business valuation will need to be performed to determine what the business is worth. The parties can then determine how business assets will be divided, such as by deciding to sell the business and split the proceeds or having one spouse buy out the other's share.

• Retirement accounts: Employee benefit plans or retirement savings accounts such as 401Ks, IRAs, and pensions are another significant type of asset that a couple will need to consider. The funds in retirement accounts may be divided, but transfers or withdrawals may result in tax liabilities and early withdrawal penalties. However, this can be avoided through the use of a Qualified Domestic Relations Order (QDRO). An attorney can provide guidance on how these assets may be divided and assistance with creating and executing QDROs to divide retirement accounts and pension benefits.

• Investments: Assets such as stocks, bonds, and mutual funds may need to be divided between the parties or liquidated to ensure that marital property can be divided equitably. A professional financial advisor or accountant can provide advice on how these assets may be handled during the divorce process.

• Art, jewelry, and collectibles: Valuables and other luxury items can sometimes be difficult to value, and they may also hold sentimental value for one or both spouses. When addressing this type of property, it is important to obtain accurate appraisals. A couple may decide to divide certain items or sell some of their belongings and split the proceeds.

Contact Our DuPage County High Asset Divorce Lawyers

Getting a divorce can be difficult, no matter the situation. However, when significant assets are involved, the process can become much more complex. In these cases, it is important to work with an experienced lawyer who can guide you through the process and help ensure that your assets will be divided fairly. At Mevorah & Giglio Law Offices, our Naperville high net worth divorce attorneys can make sure all financial issues will be considered correctly as you work to end your marriage. Contact us at 630-932-9100 to arrange a complimentary consultation.

Sources:

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

https://smartasset.com/financial-advisor/high-net-worth-divorce 

https://www.fidelity.com/life-events/navigating-finances-during-divorce/what-you-need-to-know-about-splitting-assets