In general, a high-asset or high-net-worth divorce refers to a divorce in which the couple owns more than a million dollars in various assets. While most divorces come with many challenges, even those that don’t involve significant assets, high-asset divorces have specific complications and considerations due to the complex types of property and assets the divorcing couple must account for and divide. This is also the reason why the process can be significantly longer than a typical divorce.
It’s in your best interest to discuss your case with a divorce attorney if you are facing a high-asset divorce. Our Georgia divorce attorneys at Banks, Stubbs & McFarland have been handling high-asset divorces for decades and can help you understand what laws apply to your case and the best way to go about the divorce process.
Why High Asset Divorces Are Inherently Complicated
The Scope of Law and How It Applies to The Divorce Case
Since it’s common for wealthy couples to have a broad range of assets, more rules must be considered during a divorce. Dividing one or two homes, bank accounts, and retirement accounts typically involve straightforward rules in a typical divorce. On the other hand, dividing multiple properties, businesses, foreign holdings, and trusts, among many others, will require additional rules and consideration of potential issues.
In addition, applying the specific rules will prove more challenging since wealthy couples also have more complex finances. For instance, it may be more difficult to determine exactly where all the assets are or classify certain assets since they may have been purposely hidden, are more difficult to value, or are set up for tax purposes.
Art, for example, is usually valued when it is sold. The entire process is more complex and time-consuming because of all the issues that may arise with property division and the rules surrounding them.
Third Parties Are Commonly Involved
Wealthy couples typically share generational and joint wealth. This is often the case when there is shared family wealth, such as dynasty trusts. Consequently, high-asset divorces can involve third parties, such as children, siblings, and other family members who have direct financial interests. In more complex situations, these third parties may have a legal claims to the assets involved in the divorce. Consequently, more rules must be applied, and considerations of legal ownership must be resolved.
Jurisdiction Issues
It’s also common for wealthy couples to have assets in various jurisdictions. Many of them hold money, investments, and real estate in multiple states or countries, which means that multiple jurisdictions will be involved. This will further complicate the divorce process due to the introduction and application of divorce laws in other states or countries.
