High-asset divorces have more reasons for spouses to disagree with one another. Property division can easily become more complicated, and those with higher incomes and larger marital estates may also have more shared debt to divide.
Spouses preparing for a high-asset divorce may need to strategize carefully to protect their financial interests. The more that they retain from the marital estate, the simpler it can be to rebuild their lives after the divorce.
What are some of the strategies that couples use to protect valuable assets as they prepare for high-asset divorces?
Identifying non-marital property
One of the simplest ways to protect an asset is to establish that it is not subject to division. The family courts recognize several kinds of property as non-marital assets.
Items owned prior to marriage or acquired after separation are often not subject to division when people divorce. Assets received as a gift or as an inheritance are also usually non-marital property. A careful review of financial records can help people identify and preserve non-marital assets.
Properly valuing assets
Valuing assets allows the spouses or the courts to divide property in a reasonable manner given the overall contents of the marital estate. From investments and real property to collections and businesses, there may be various valuable resources in the marital estate that couples have to put an appropriate price on as part of the divorce process.
Those who know the fair market value of the home where they live and the value of other major assets may have an easier time negotiating for a fair property division outcome. Professionals can sometimes assist with asset valuation.
Trying to settle outside of court
Litigating property division matters can become very expensive. Divorce litigation also deprives spouses of control over the terms set.
People who settle outside of court can pursue uncontested divorces that cost less overall. They can also prioritize specific property division terms that help set them up for future financial stability, such as maintaining ownership of a business or possession of the marital home.
Some couples negotiate postnuptial agreements before either spouse files for divorce. Others work collaboratively after deciding to end the marriage so that they have control over the final terms.
It is important to recognize that those facing complex divorces with more at stake often need the support of an attorney. It can be helpful for individuals facing divorce to learn about state statutes so they understand what is likely to occur throughout the divorce process. Those who have a pragmatic approach to a high-asset divorce can focus on what matters most and may be able to preserve more of the marital estate for rebuilding their lives after their divorce.