What to Expect in a High-Asset Divorce

Money can’t buy happiness, but it can certainly increase the complexity of divorce. While the complexity of divorce varies from couple to couple, high net worth is one of the most common aggravating factors, especially in the absence of a prenuptial agreement. Divorcing couples with significant assets should thus prepare themselves for what’s involved in a high-asset divorce, and a Stockton divorce attorney can explain what to expect.

Extensive Financial Disclosures 

Divorcing couples are required by law to disclose their finances to each other, and the more assets you have, the more extensive and time-consuming your financial disclosures will be. And the consequences for making mistakes are high — if you leave assets out of your disclosures or lie about their value, the court may award a portion of the omitted/undervalued assets to your spouse. High net-worth couples may also need to gather and disclose more extensive documentation for their assets. 

Forensic Accounting 

With a great deal of money and property at stake, high-net-worth individuals may be tempted to hide assets from their spouses prior to or during the divorce process. While hiding assets is unlawful, that does not mean that certain individuals do not engage in it. High-net-worth individuals also typically have access to more sophisticated methods of hiding assets, such as by storing them in off-shore accounts or within shell corporations. 

Complex Property Valuations 

High-net-worth couples are more likely to own assets that are difficult or complex to value, such as business interests, trusts, artwork, jewelry, designer clothing, and luxury automobiles. The spouses may also disagree as to the valuation of certain items — for example, one spouse’s appraiser may value an item significantly higher or lower than the other spouse’s appraiser. In such cases, the spouses will first have to come to an agreement on the value of the assets before moving on to property division. 

Multiple Attorneys 

Most divorce cases involve only two attorneys—one for each spouse. However, high-net-worth individuals may be more likely to hire multiple attorneys to handle the issues in their divorce, such as one attorney to handle real estate matters and another attorney to handle alimony, for example. Communicating and coordinating among multiple attorneys adds an additional layer of complexity to divorce proceedings that most couples do not face. 

Jurisdictional Issues 

High-net-worth couples are more likely to live and/or own property in multiple states (or even countries). While this gives them some flexibility over which state to initiate proceedings in, family law is different in every state. Conflicts of laws between states can significantly complicate and delay divorce proceedings. 

Speak to a Stockton Divorce Attorney About Your Concerns 

If you’re a high net-worth individual and considering filing for divorce, you’re likely apprehensive about what you’re up against. The best way to proceed is to make sure that you understand what’s ahead, and that starts with speaking to an attorney. To get started, please contact a Stockton divorce attorney at McKinley, Conger, Jolley & Galarneau by using our online form or calling us at 209-477-8171.