High-Asset Divorces / Asset Protection in Divorce
Special Consideration For Asset Protection In The High-Asset Divorce
No one wants to feel as if they were exploited with a financial settlement in a divorce. When large or complicated assets are involved, special attention and steps must be taken, to ensure your assets are protected. Over or under valuing assets makes a significant difference in the outcome. Asset protection refers to a process of ensuring that assets are not over or under valued and the marital estate is accurately defined in a divorce proceeding.
There are several factors that must be analyzed to ensure assets are protected in high-asset divorces.
Character Of The Property
In order to determine if a financial settlement is fair and reasonable in a divorce you must first analyze the character of the property being divided. Is the character of the property marital and subject to division or non-marital or separate property and not subject to division. Property can also hold a quasi-marital status, meaning part of the asset is marital and subject to division and part is non-marital and not subject to division.
Valuation Of The Property
The method employed to value an asset can make a difference in a financial settlement in a divorce. Valuations can include a present value calculation of retirement or investment accounts, appraisals for both commercial or residential real estate and other assets such as art work, or valuation of a business based on assets and good-will.
Colorado has a five year look back period for a financial settlement in a divorce. Meaning that if assets are withheld from the other party, the court maintains jurisdiction to reallocate the settlement. This may also include paying a portion of the other party’s attorneys’ fees and costs to relitigate any potential withholding allegations. Especially in a high-asset divorce you only want to litigate the case one time, thus you must ensure that you have provide all necessary and required documents.
Do You Have A High-Asset Or Complicated Asset Divorce?
As a general rule, if your assets involve a mix of marital and non-marital property, inheritance, assets purchased with an inheritance, family trusts, family-owned business, closely held business, substantial real and commercial property, and /or investment accounts, your divorce would be referred to as a high asset divorce.
POINTS OF SERVICE:
- Ensure assets are valued appropriately and not over-inflated
- Work with financial professionals to craft a value of the marital estate and forecast various outcomes
- Work with a team of professionals for specific asset valuations
- Analyze the character of property to ensure marital property is properly identified and valued
As you have probably realized, divorces that involve high value assets or complicated assets necessitate an attorney well-versed and experienced in navigating and advising you through your divorce. Our attorney has experience in litigating complex asset cases involving multi-million dollar asset portfolios, withholding of material financial information, hidden assets, and complex pension and retirement divisions.