It is not uncommon for the rich and famous to be in the news for several reasons including divorce. Divorce is tough and when you are dividing up your property or estate, it can even become more complex. As a matter of fact, some high profile cases can even drag for months or even years. Here are some shocking facts to know about the division of property in a high net worth divorce.
- Taxes Are Very Important
Although transfers between spouses under the judgment of divorce are not subject to tax, achieving fair outcome requires consideration of taxes that each party will ultimately pay in terms of the assets he or she receives. Due to this, it is important to apply discounts to certain pre-tax assets in recognition that a spouse that receives pre-tax property does not receive the same value as the one who receives the same dollar balance in the post-tax assets.
- Divorce And The Business
In many high net worth cases, either one or both parties may have invested in the business either as a CEO or as partial owner. When a company is not traded publicly and the worth of ownership interest is not clear, it is important to confer with a valuation analyst to assist in determining the value of the ownership interest that is in question including any tangible assets.
- A Fair Child Support Order May Require More Than What You Think
When it comes to high net worth divorce cases, there are guideline calculations that are meant to determine child support. However, if one party has a business owner with variable income, there is often a preliminary question as to the appropriate gross income that should be used to calculate the monthly child support payment. In cases where variable or bonus incline is involved, it may be fairer if the parties structure the support to include a base monthly support amount and an additional income that is received along the way.
- You Can Prevent Your Spouse From Depleting Your Assets Once You File For Divorce
Once you file for a divorce, the court allows you to prevent your spouse from using your assets. Once a divorce is filed, an automatic order always goes to that effect. The order prohibits both parties from taking any action on the property without the other spouse’s consent. This includes property that was held individually or jointly.
- Property And Investment Consideration
In divorce cases, wealthier couples are more likely to own more real estate or have other investments that will have to be considered during the equitable distribution of their properties. These assets may include investment portfolios, stock, and vacation homes. Although the spouses may agree that the asset is marital, they may still disagree on who should receive the property or how the property should be devised.
Regardless of your situation, speaking with an experienced attorney sooner rather than later can make all the difference. They will not only provide you with peace of mind but also a wealth of resources to protect your business, yourself and your family.