Common Financial Issues in High-Net-Worth Divorces
When a married couple has assets with substantial value, the division and valuation of marital property during a divorce can be complicated. In many cases, asset buckets have different tax consequences, and some assets are more liquid than others. Coupled with market volatility, the process requires substantial financial acumen and attention to detail. Here are three financial issues commonly experienced during high-net-worth divorces and how an experienced family law firm can help address these issues:
Identification of Assets
One primary financial issue in high-net-worth divorces is identifying and separating assets. A spouse may conceal assets or fail to disclose financial information needed to complete a baseline balance sheet. In some cases, a family business or professional business may need to be valued. A highly-experienced family law attorney can accurately identify and classify assets to determine a create a precise balance sheet.
Valuation of Assets
Once the assets have been identified, there can be legal and financial issues with the determination of value. Asset valuation can be problematic as many assets, like stocks, change over time and also fluctuate during high market volatility. In most cases, the parties work with a mediator (preferably a CPA) and in some cases, also utilize a 706 financial neutral to assist with analyzing tax implication and building a balance sheet. Appraisals of property (residential and commercial) can also be conducted to determine present values.
Tax Implications on Asset Division
Another issue you may encounter during a high-net-worth divorce are the tax implications associated with asset division and the potential sale of assets. Working with a 706 financial neutral (typically a CPA), can assist parties in minimizing tax consequences associated with movement of accounts and the sale of stocks and other investments. Proper tax planning is vital to both parties.
Experienced Representation for Financial Issues in High Net Worth Divorces
If you are considering divorce, you need the best legal advice possible to protect your investments and financial portfolio. Lake Harriet Law Office specializes in providing highly effective legal representation for complex financial issues in high-net-worth divorces. Request a complimentary consultation to discuss your case today.
Randall A. Smith – Managing Attorney 612-750-484
Madeline Woodward – Student Attorney 612-223-8925
Julia Kasbohm – Student Attorney 612-223-8925
Sydney Koehler – Student Attorney 612-223-8925