Divorce is never easy, and when you’re dealing with a high net worth divorce, the stakes are even higher. Even if both parties go into the process fairly and amicably, sorting out assets can become incredibly complicated. From understanding taxes and structuring trusts properly to dividing pre-existing businesses or investments, there are many difficult issues to resolve.
Here are some challenges unique to a high net worth divorce along with advice on navigating them.
A High Net Worth Divorce Can Be Complex
Complexities arise simply due to the large sums of money and assets involved. It requires an experienced legal team and financial advisors to negotiate fairly on behalf of both parties. The complexity further intensifies if there are family businesses, foreign accounts, and other investments to consider.
Simply navigating the finances may require experts like tax lawyers, accountants, and real estate appraisers among others to ensure a satisfactory settlement in what can be an emotionally difficult time. With careful planning, sound advice from skilled professionals, and an understanding of each spouse's goals, high net worth divorce proceedings can offer positive outcomes for all involved.
Preserving Assets Can Be Difficult
It can be difficult to ensure that both parties receive an equitable settlement. On one hand, you want to make sure each spouse can remain within their accustomed lifestyle. On the other, neither spouse wants to lose the bulk of their assets.
To minimize the losses associated with any property dispute, both sides should research asset values. The goal is to generate thorough inventories of all property that may be under contention. Using fair loan negotiations, each spouse can feel confident that they are getting the best possible outcome.
Complicated Tax Implications
Simply transferring assets can result in high taxes. You must account for all expenses in your property division, as they will affect the overall value of the assets.
An experienced attorney can explain what to expect, provide information on potential options, and make sure both comply with all tax regulations. Furthermore, they can help to negotiate an agreement regarding tax issues, accounting for the financial health and long-term goals of both parties.
A knowledgeable consultant is also helpful in these situations. They can help identify any potential issues, offer strategies for mitigating taxes owed, and be on hand for further questions.
Ultimately, it pays to work with a team of professionals when dealing with your high net worth divorce.
Planning for Retirement
When it comes to high net worth divorces, planning for retirement can be particularly tricky. To protect their future financial security, parties should consult a retirement and investment specialist who can help them determine the best way to allocate assets between ex-spouses.
Specialists in this field are equipped to crunch the numbers and forecast the effect of various asset splits. They can help devise strategies to ensure each spouse can meet their changing financial needs.
Alimony, Child Custody, and Other Post-Divorce Arrangements
Before you are finished, you must also account for alimony, child support, and child custody.
You will encounter many of the same issues outlined above. It can be difficult to make sure everyone is appropriately cared for while preserving your assets. Experienced professionals can help ensure the arrangement is fair and beneficial to both parties involved.
The Law Office of David A. Martin & Associates is a skilled law firm that can help you navigate the cost and complications of your high net worth divorce. For a free consultation, contact our professionals by calling (916) 299-3936 or filling out our online contact form.