High-asset divorces involve complex financial matters that require careful consideration and negotiation. When couples with significant assets decide to divorce, dividing property and assets can be a challenging process.
Understanding how asset division works in high-asset divorces can help people navigate this process more effectively.
Identifying and valuing assets
In a high-asset divorce, all assets acquired during the marriage are typically considered marital property and subject to division. This includes real estate, investments, business interests, retirement accounts and valuable personal property. It is important to identify and assess all marital assets to ensure an equitable division.
Determining the value of assets is a critical step in the asset division process. For high-asset divorces, it may be necessary to enlist the help of financial experts. This can help people accurately assess the value of complex assets. For example, businesses, investments or intellectual property. Additionally, NJ.gov states that if you split property with your former spouse, this could affect your property tax deduction. Familiarize yourself with tax-related issues that could impact you.
Business ownership
Business interests can complicate asset division in high-asset divorces. When one or both spouses own a business, determining the value of the business and deciding how to divide or offset its value can be complex. Options may include selling the business or buying out the other spouse’s interest. Sometimes, couples continue to co-own the business post-divorce.
Navigating a high-asset divorce requires careful planning and a thorough understanding of asset division principles. By approaching the process with clarity and transparency, people can effectively navigate the complexities of asset division and achieve a fair resolution in their high-asset divorce.