What You Need to Know When Navigating a Divorce When High Value Assets Are Involved 

 Posted on October 19, 2022 in Divorce

As is often the case, divorce can be a long and challenging procedure riddled with heartbreak, anger, and resentment toward your estranged spouse. An area that can become highly contentious during divorce proceedings is if there are considerable assets involved. The dividing of these assets can certainly be emotionally strenuous. If high value assets are relevant to your divorce case, there are several practical and monetary concerns that both spouses will need to be aware of. Much can be at stake in a high-asset divorce, and to make sure your rights are protected, contacting a knowledgeable Illinois divorce attorney can make all the difference. 

Legal Matters in High Asset Divorces

When dividing property between spouses who are getting divorced, the state of Illinois engages in the principle of “equitable distribution.” This means the marital property does not need to be cut exactly in half between the divorcing parties. Instead, equitable distribution means that each spouse is supposed to receive a reasonable and rightful portion of the marital property owned by the couple. 

It should be noted that only marital property that either spouse attained during the marriage is subject to division. Any property obtained before the marriage or after the legal separation will remain owned by that spouse. To complicate matters, there are certain situations where the marital and non-marital property can be commingled. Deciding what is and is not marital property can be an arduous task. 

 A couple of property types can be involved in a divorce case involving high assets. These include:

• Real estate – In many cases, a married couple may own multiple properties in addition to their family home, like vacation homes and investment properties. When deciding who will own what, it may come down to where a parent who holds the most parenting time will live with their children. In addition, a spouse’s ability or non-ability to make mortgage payments and property taxes may also play a fundamental role in who gets what. 

• Investments and retirement benefits – If a married couple’s finances are tied together in multiple accounts, it will be helpful for a financial expert to examine the accounts to determine how to divide complex assets like stocks, bonds, and any other relative investments. In addition, spouses may need to separate IRAs, 401(k) accounts, and pension benefits. If this is relevant to your case, it may be wise for you to use a Qualified Domestic Relations Order. This will allow you to easily divide your retirement accounts and ensure that you can avoid paying unnecessary taxes and penalties for early withdrawal. One of the most important things you can do to ensure you don’t lose anything unnecessarily during a divorce is to get all your financial statements in writing. That way, when the court asks you for proof of your assets, you will be ready with as much documentation as possible.

• Business Interests – If either spouse purchased, established, or invested in a business during the marriage, that business will be considered a marital asset that needs to be divided between the spouses. During this period, a forensic accountant can work to determine how much the business is worth decisively. In addition, it is often necessary that spouses work out a plan to divide assets to allow the company to continue operating after the divorce proceedings have concluded. 

• Inheritances – If one spouse has obtained property through gift, legacy, or descent, this is non-marital property. Furthermore, this applies to property attained in exchange for an inheritance left to one spouse. 

Contact an Arlington Heights High Asset Divorce Attorney 

Divorce is a difficult time where you may feel various emotions. This is particularly true when considerable assets are at stake. In addition, there are tax consequences that couples may face, such as capital gains tax and other complex legal issues that will need to be sorted out. To ensure your rights are protected and your best interests are put first, consider contacting an experienced Arlington Heights high-asset divorce lawyer with A. Traub & Associates. Call 847-749-4182 to schedule a private and thorough consultation.

Source:

https://www.businessinsider.com/how-to-protect-money-divorce-2017-1#2-get-copies-of-all-your-financial-statements-2