Property division matters often complicate divorce proceedings. The more resources couples have accumulated, the greater the potential for conflict as they navigate the divorce process. Those who have real property, investment accounts, retirement savings and other valuable resources may find that divorce is much more difficult for them to manage. There are several, somewhat predictable complications that tend to arise in high-asset divorces.
What issues commonly increase the level of conflict between spouses in a high-asset divorce scenario?
Disputes about marital and separate property
Complex marital estates create more opportunities for spouses to fight over what assets they own jointly and what assets belong to each spouse separately. Some people mistakenly think that anything held solely in their names is their separate property. However, the use of marital income to acquire property and the date of acquisition are more important considerations than the name on an account in most cases. Commingling or combining separate and marital resources can also become a complicating factor in divorces with higher levels of marital property.
Increased incentive for misconduct
When people have enjoyed a higher standard of living and accumulated more wealth, there is more reason for them to engage in misconduct to preserve as much property for themselves as possible. Some people attempt to hide assets from one another and the courts so that they don’t have to divide those resources when they divorce. Others might intentionally take on large amounts of debt right before the divorce or waste marital money in an attempt to limit what their spouses receive during property division proceedings. People may need to perform very careful reviews of finances to identify warning signs of dissipation and hidden assets when there is a complex marital estate.
Challenges valuing property
Spouses in high-asset marriages may own resources that are difficult to properly value. They may need professional assistance determining what real estate, high-cost collections and investment resources are actually worth. Disputes about the value set for certain resources and disagreements about the valuation date for real property and investments can be frustrating complications during complex divorces.
Recognizing that a high-asset divorce requires a cautious approach can be beneficial for those worrying about their financial security after divorce. Spouses have a right to a fair share of their marital estate, although they may need assistance achieving an equitable outcome. To that end, seeking legal guidance as proactively as possible is generally wise.
