Division of property is usually one of the most contentious issues during the divorce process. Division of property becomes even more contentious and conflict-riddled when it involves a substantial estate that may include real estate holding, complex trusts, retirement accounts and foreign assets. These are known as high net worth divorces.
Most high net worth divorces are usually complex due to the nature of assets involved. Massachusetts is an equitable division state when it comes to marital property division. As such, the courts take multiple factors such as occupation, employability, age, health and income sources into account when ruling on marital property distribution during the divorce.
There are a number of factors that can make a high net worth divorce more complex. Here are some of them:
Identifying the assets
Determining the identity of marital assets can be difficult in a high net worth divorce. There may be assets that were acquired before the marriage hence considered separate. However, some of these assets may still be impacted by the divorce since the amount of their appreciation may be considered marital property. Additionally, most high net worth divorce cases usually involve prenuptial agreements that can impact property rights.
Issues concerning complex assets
Asset issues involving high net worth divorce are usually complex. It is not unusual for the divorcing couple to own multiple pieces of real property. Additionally, they may have shared interests in businesses. Divorce can also impact a joint venture in a number of ways because it can affect the shareholders’ attitude toward the business. Loss of a controlling share following property division can also impact the business’ operations.
Divorce is a difficult process to go through. It does not get easier when dealing with a high net worth. However, understanding and addressing the complexities that come with high net worth divorces can help you navigate this process in a fair and satisfactory manner.