With significant assets and properties at stake, a high-asset divorce is already complex as it is. Nevertheless, certain circumstances can further complicate a high net worth divorce, which includes, but is not limited to, the following:
1. Assets in complex structures
When assets are tied up in complex structures, such as family trusts, limited partnerships or offshore accounts, unraveling and valuing them can be an intricate and extended process. This can also bring about valuation difficulties, especially when parties disagree on each asset’s value.
2. Properties at multiple locations
Different legal systems and laws apply to properties depending on their location. Hence, if a divorce includes assets spread across various states or countries, it can complicate the division due to different laws and tax implications, among other issues.
3. Hidden assets
In some high-asset divorces, one spouse may try to hide assets to avoid them from being subject to the division in an attempt to reduce the other’s share. This can lead to forensic accounting and in-depth investigations, which can prolong and further complicate the divorce.
4. Privacy concerns
In high net worth divorces, it is not uncommon for high-profile individuals to be involved. This circumstance can make privacy and confidentiality a critical issue during proceedings and may even influence negotiations.
Finding the right tools and support
Given the complexities involved in its process, a high-asset divorce often requires a team of professionals, including divorce attorneys, financial planners and accountants to protect the parties’ economic interests.
If you are going through a high-asset divorce, knowing these factors can help you make informed decisions, regardless of whether you decide to mediate or litigate in court. Moreover, this understanding can also help you set your expectations as to the possible outcome of your divorce.