Navigating High-Asset Divorces

Going through a divorce presents emotional and practical challenges. While each breakup is unique, it is generally true that ending a marriage becomes more complicated when the parties possess substantial wealth. High-asset divorces often involve matters that require careful consideration and skillful legal guidance. While it’s apparent why issues such as the distribution of martial property can be more complex for high net-worth couples, there are other potential obstacles are more difficult to anticipate. 

Some of the specific issues that can affect high-asset divorces include the following: 

• Asset valuation — Wealthy couples often own multiple assets that fluctuate in value, such as real estate, investments, luxury vehicles, art, and antiques. It might be necessary to retain experts so that you can negotiate the division of marital property with a true understanding of what is at stake. 
• Jurisdiction questions — High net-worth families frequently own multiple homes. There are instances where a divorcing spouse opts to file in one jurisdiction over another because they believe laws there relating to parenting and financial matters will give them an advantage. 
• Business ownership — A family business can be a wonderful thing, until the individuals go their separate ways. Should spouses share ownership, conflicts over who will retain control could become highly contentious. In many cases, a buyout agreement may be necessary to ensure a smooth transition and protect the interests of both parties.
• Retirement accounts — Depending on their age, financially successful couples might have a substantial amount of retirement assets, including 401(k) plans, IRAs, Roth IRAs, and/or pensions. A Qualified Domestic Relations Order (QDRO) may be necessary to divide retirement accounts without incurring tax penalties. Disposition of funds from family trusts and inherited assets could also create complications if one spouse claims that they were commingled with the marital estate. 
• Spousal and child support — Sharp disputes can arise during discussions of alimony (also known as spousal maintenance) and child support between spouses who have enjoyed a comfortable lifestyle. Someone who relied on their spouse’s substantial income might have difficulty earning anything close to that if they return to the workforce. There might be also be disagreements over whether payments from one parent to the other should cover expensive vacations, private school tuition and costly extracurricular activities. 

If you find yourself facing a high-asset divorce, it is essential to speak with a knowledgeable attorney who can guide you through the legal process and help protect your interests.

The Henry Law Firm P.A., in Overland Park represents Kansans in all types of family law proceedings, including high-asset divorces. For a consultation, please call 913-381-5020 or contact us online.