Why Are High-Asset Divorces More Complex?
Divorce can get traumatic and messy, and the situation can get worse when high-value assets are involved. The complexity of the assets can make property valuation and division emotionally draining and costly. Various issues arise in high-asset divorces, and it would be in your best interests to hire skilled family law attorneys in Kansas to protect your rights.
Legal experts can help you get through a high-asset divorce quickly and more efficiently. Their input can help you minimize the potential for costly disputes during property valuation while protecting your interests in the marital property subject to division.
What Legal Issues Make High-Asset Divorces Complex?
Kansas City divorce lawyers mention that various challenges may arise during a high-asset divorce, which may not be present in other divorces. Evaluate these unique situations and be well-prepared to handle them for an amicable resolution:
Hidden Assets
One spouse could hide assets in a high-asset divorce to retain a more significant share of the marital assets or prevent the other spouse from obtaining them. Spouses may also hide assets to reflect ownership of fewer resources to receive more assets during property division.
Even if you think your divorce is amicable and believe your spouse cannot hide assets, it’s crucial to be cautious. They may not purposefully hide assets, but a simple investigation and valuation of assets may reveal something you knew nothing about, giving your divorce a new trajectory.
On the other hand, your spouse could intentionally conceal assets by transferring them to third parties or new accounts. The action is illegal and constitutes fraud. Missing assets can impact divorce, so consult extensively with experienced divorce lawyers in Kansas City to fight for what you rightfully deserve.
Publicity
High-asset divorce often attracts public scrutiny, including media attention that you may not want during an emotionally-conflicting process. The situation can even be more complex if there are children involved. Your lawyers can help you take specific steps to avoid media attention, such as settling the divorce through a separation agreement instead of litigation.
Lengthy Process
When divorcing spouses agree on how to divide assets and other matters affecting the divorce, the process can take a shorter time to complete. Unfortunately, divorces with high-value assets such as real estate and business entities may take longer to settle than cases involving fewer or simple assets.
Despite the process being lengthy, you must embrace patience. Allow your lawyers enough time to do the detailed word of asset discovery and valuation to ensure the process is straightforward and transparent. Rushing the process can be a severe mistake that can rob you of valuable assets that you’re entitled to.
Costly Legal Fees
The legal costs of high-net-worth divorces can be higher than those without complex assets. Complicated assets require detailed legal work to determine their value.
In most cases, divorce attorneys in Kansas City must work with a team of other professionals and advisors to determine the value and status of large estates. Depending on the case specifics, the services of forensic financial investigators or advisors may be required for complicated assets.
Tax Implications
High-asset divorce often have major tax implications related to:
- Benefit plans
- Asset transfer
- Business entities
- Alimony payments
The amount of payable taxes is often higher in high-net-worth divorces. Without proper legal guidance, you could make tax mistakes that can dramatically affect the outcome of a property settlement. Work with qualified tax attorneys to evaluate how governing tax laws affect property division.
Business Valuation
Business valuation compares business assets and liabilities. Assets comprise the business’s real and personal property, all equipment, accounts receivable, supplies, cash, and other tangible assets. Sometimes, the business’s goodwill is valued as an asset, meaning the value of the brand’s reputation is given a monetary value.
Determining the value of all these assets may require a comprehensive forensic assessment to determine the true value and income. The valuation process may entail the following aspects:
- Calculating investment values
- Evaluating ownership interests
- Tracking cash flows
- Reviewing profitability
- Valuing stock held in trust
- Identifying and recording passive income
- Ascertaining overdue compensation or retained earnings
Support Payments
Spousal and child support payments are vital aspects of divorce cases. However, the proceedings can be different in high-asset divorces. For example, if the parents have a certain gross income, typical support calculations may not apply. Also, formulas for calculating spousal support may not apply in these divorces.
The judge can determine how much to award as child and spousal support. They will consider factors such as the assets awarded to each spouse, each party’s earning potential, the length of the marriage, the tax consequences of income and assets, and the need for maintenance. Family law attorneys can evaluate your case and fight to ensure fair amounts.
Spending During Divorce
Your spending behavior during the divorce can affect the divorce outcome. Buying expensive items or spending more money than usual could hurt your case, as the court may believe you have wasted or dissipated assets. A spouse who is found to waste marital assets could face adverse consequences during property division.
A Skilled Family Law Attorney Helping You Navigate High- Asset Divorce
Settling a divorce case can be challenging, especially if the divorcing parties can’t agree on matters such as marital assets division and spousal support. The case can become more complex if high-value assets are involved. If you’re about to embark on a complicated divorce case, engage the help of skilled Kansas City divorce lawyers.
They can evaluate the case details and help you prepare a game plan that can dramatically lessen the stress of high-asset divorces. Fisher Law, LLC, has knowledgeable family law attorneys who can walk this journey with you, armed with a strategy for a favorable case outcome. Call us at 816-307-9752 to schedule a case assessment.