Under state law, a couple’s marital property must be equitably divided if they decide to divorce. When one or both spouses hold complex business interests or substantial assets, fairly allocating their property can be challenging. If you face a divorce involving considerable net-worth, a Florence high-asset divorce lawyer could assist you. Our firm’s accomplished divorce attorneys work with business valuators, actuaries, and forensic accountants to ensure a proper valuation and distribution of your marital property.
What is a High-Asset Divorce?
High-asset divorce is one that includes a significant amount of money, property, businesses, assets, and other valuable property. High-worth assets often include:
- Real estate, including vacation homes, commercial properties, and timeshares
- Retirement accounts, such as pensions and annuities
- Rare collections like cars, wine, art, or jewelry
- Investment accounts
- Patents, copyrights, and trademarks
- Professional businesses and licenses
- Life insurance
Identifying a spouse’s interest in high-value assets can be difficult, particularly if they own the asset with other business partners and investors. A high-asset divorce lawyer in Florence could develop a specific strategy to accurately identify each spouse’s investment in the property.
Equitable Property Division in Florence
Spouses might assume their assets will be divided evenly in their divorce. However, state law requires judges to allocate a couple’s property fairly, which may or may not result in an equal division. Under Kentucky Revised Statutes § 403.190, a judge may consider certain factors when determining asset division. Some of these include:
- Each spouse’s contribution to the acquisition of the marital property, including either party’s contribution as a homemaker
- The value of each spouse’s property
- The length of the marriage
- Each spouse’s economic circumstances when the property division becomes effective
Determining an equitable asset division can be challenging when the couple’s wealth includes complex property interests such as investment accounts, commercial real estate holdings, and stock options. A high-asset divorce attorney is well-versed in the state’s equitable distribution laws and could work to protect as much of a spouse’s net worth as possible.
Special Considerations in a High-Asset Divorce
There are several considerations when evaluating and litigating a high-asset divorce that are unique to these types of marriage dissolutions.
High-asset couples may understandably be reluctant to disclose their financial information in a public courtroom. A knowledgeable attorney could request that the parties’ financial records be sealed in order to alleviate this concern.
The Need for Experts
Valuing unique assets such as cyber currency, antique collections, or complex business holdings may require an expert’s assistance. Forensic accountants, real estate appraisers, and tax specialists can assist parties who are facing a substantial net worth divorce.
Complex Property Valuation
While some assets may be fairly easy to value, such as bank accounts, others may be more challenging because their values are somewhat subjective. For example, a rare art collection may have varying values depending on who appraises it. Or a family heirloom may be worth significantly more to one spouse than to the other.
Increased Tax Liabilities
The tax implications of dividing a substantial marital estate can be complex. For instance, liquidating certain retirement and investment accounts could trigger capital gains taxes and penalties for early withdrawals. Careful planning is required to avoid unnecessary and unexpected tax consequences after the divorce.
Any spouse facing a complex financial divorce should be aware of these and other unique considerations when negotiating a settlement or presenting their case in court. A high-asset divorce attorney in Florence could discuss these challenges and develop a plan to address them fully.
Talk to a Florence High-Asset Divorce Attorney Today
A divorce is often complex and can become even more so when a partnership of substantial means faces divorce. Valuation challenges, confidentiality concerns, and increased tax consequences could result in an even more contentious legal process.
If you and your spouse have assets that have substantial-worth, a Florence high-asset divorce lawyer could help you reach a fair property division and avoid unexpected financial consequences. Our experienced attorneys do not seek short-term results at the expense of the bigger picture, including your children’s well-being and your long-term financial future. Call us today to discuss how to reach an equitable property settlement.