The divorce process is always stressful even for couples who agree a divorce is in their best interest. The stress is compounded when there are a lot of assets involved. The one who generates most of the income fears losing a lot of money. The one who generates less fears not getting enough.
In an ordinary divorce, couples may own a home, one or two vehicles, and maybe a family business. In a high asset divorce, the couple has many assets, each of which must be individually valued. Some examples are:
- Ownership of a business or professional practice.
- Stock options and voting rights.
- Real estate holdings.
- Art collections.
- Inheritances.
- Multiple retirement accounts.
- Savings accounts.
- Assets that are held in a trust.
In addition, the couple may each have separate property that must be identified as well as the need to identify gifts and inheritances, which are separate property.
There are tax implications to consider when dividing the property. Issues of child support and spousal support can be more complex in a high asset divorce.
The couple may also have privacy issues and not want to file financial documents in court where the public is allowed access to them.
A Collaborative Divorce is a Good Option for a High Asset Divorce
A Collaborative Divorce may be the best divorce process option since it provides the privacy that a couple wants along with the help of a neutral financial professional who can assist with the property division. Some benefits of a Collaborative Divorce include:
- It provides privacy since no documents are filed with the court except for the final settlement agreement.
- It is a team-based approach. The neutral financial professional will assist you with identifying all the assets and valuing them.
- You may need a neutral professional strictly for business valuation.
- You may need a neutral investment specialist who can explain how the investment structure works, how the income is earned, and therefore, how it needs to be split.
The collaborative process assures that the right person with the right expertise is a member of the team giving guidance to the couple.
Heberger & Company Can Help
For more information about how a neutral financial professional can help you with valuing your assets and advice on the best way to divide them, contact us at Heberger & Company An Accountancy Corporation.
This article was originally posted on the Collaborative Divorce California’s website on 9/13/2022
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The Privacy Benefit in Collaborative Divorce
When a spouse files a divorce petition in court, it becomes part of a public record that is available to any member of the public to review. In a standard litigation process, that becomes true of any documents required by the court for it to make decisions in the case. A Collaborative Divorce is different and allows the couple to keep their information private. What Happens in a Traditional … [Read More...]
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