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5 Types of Complex Assets to Address in a High Net Worth Divorce

Posted on in Divorce

North Texas Divorce LawyerIn most cases, getting a divorce will require spouses to consider multiple complex issues. When a couple has joined their lives together, determining how to separate from each other can be difficult, regardless of the reasons for their divorce. While all couples will need to make decisions about the division of their marital property, spouses with a high net worth may find this process to be especially complicated. By considering different types of assets and determining how to reach fair and equitable agreements on how these assets will be divided, a couple can complete the divorce process successfully and ensure that both spouses will have the financial resources they need going forward.

Dividing Valuable Marital Assets

In divorce cases where a couple has a high net worth, assets such as the following may need to be addressed:

  • Real estate - While determining how to handle ownership of a couple’s primary residence may be difficult enough, the asset division process may become even more complicated if a couple owns multiple properties, including vacation homes and guest homes, as well as properties leased to commercial or residential tenants. Spouse may need to consider whether either party wishes to continue living in a home, whether a person will be able to assume sole ownership, and whether it may be beneficial to retain ownership of a property that generates ongoing income. If necessary, a couple may choose to sell one or more properties during their divorce. If a spouse will continue owning a property, they will need to remove the other spouse’s name from the title, and they may need to refinance the mortgage in their name alone.

  • Business interests - A spouse who is a business owner will often wish to continue owning and operating their business. A business valuation can ensure that both spouses fully understand the value of the business assets they own. A spouse may be able to maintain sole ownership of a business by buying out the other spouse’s share of business assets, or a couple may choose to continue co-owning a business going forward. If other arrangements cannot be made, it may be necessary to sell the business during the divorce process.

  • Executive compensation and retirement benefits - A spouse who is in an executive position may earn multiple types of compensation in addition to their salary. A couple may need to consider the value of stock options, deferred compensation, and other perks or benefits. Retirement assets will also need to be addressed, and if a couple will be dividing the funds in a retirement account or allocating pension benefits between spouses, they may use a qualified domestic relations order (QDRO) to ensure that taxes and penalties will not apply to withdrawals or transfers.

  • Valuables - Multiple types of property with a high monetary value may need to be addressed, such as artwork, jewelry, antiques, collectibles, or designer clothing and furniture. Appraisals may be performed for these items to ensure that both spouses fully understand their value and can divide all of their assets fairly.

  • Intellectual property - Spouses who own patents, trademarks, copyrights, or similar intangible assets may need to consider the income that may be generated from these assets in the years following their divorce. Royalties or licensing fees can represent a significant source of income, and spouses will need to fully understand the value of maintaining ownership of these assets.

Contact Our Frisco High Net Worth Divorce Lawyer

If you and your spouse own any of the assets discussed above, or if one or both of you earn a significant income, you may need to address a variety of complex financial issues during your divorce. At Law Office of Philip W. Moore, Jr., we can help you gain a full understanding of your financial situation, and we can advise you on how you can protect your interests during the legal process. We will help you achieve an outcome to your divorce that will allow you to meet your needs going forward. Contact our Collin County high asset divorce attorney at 972-954-6455 to arrange a free consultation today.

 

Sources:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm

https://wiserwomen.org/wp-content/uploads/2020/03/divorce_and_retirement_how_to_take_control_20.pdf

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