When it comes to someone’s financial circumstances, individuals are often prone to exaggeration. People will try to present themselves as more successful or wealthy than they actually are. However, people can also take the opposite approach to certain financial matters. They may assume that they are members of a lower-income category than is actually appropriate for their situation or they may misunderstand what the “average” American household consists of.
For example, many families may question whether their circumstances actually meet the standard for a high-asset divorce. Spouses may fail to recognize that they are part of a high-asset marriage and that they could be facing significant complications in their dissolution process as a result. Therefore, it can be very helpful to clarify what constitutes a high-asset divorce in Georgia.
Overall value and asset complexity matter
More cases may qualify as high-asset divorces than people realize. When evaluating a household to determine if the divorce will be a high-asset divorce or a standard one, the full value of marital resources requires consideration. The total value of their marital property, their standard of living and the diversity of their portfolio can all influence the needs of a divorcing couple.
Especially for those who own businesses or real property, their marital estate could very easily surpass the basic financial threshold for a high-asset divorce, which is currently only $1 million in household property. Attorneys may employ a similar approach in cases with lower assets but a combination of valuable and complex assets, like investments, retirement savings, real estate and businesses.
With more assets come more challenges
High-asset divorces are often more contentious than divorces with less property at risk. They can also quickly become very complicated, as there may be assets that people cannot liquidate and substantial debts to address the marital property. Couples in Georgia that believe they are close to or over that $1 million threshold for a high-asset divorce will need to be that much more careful about how they approach the divorce process.
From obtaining financial records to watching carefully for signs of hidden income or assets, there are many unique considerations people will have to address in a high-asset Georgia divorce. Even when couples do not wish to apply the high-asset divorce label to their situation, they still need to move forward with extra care if they want to avoid substantial financial losses during the dissolution process.
Learning more about the terms applied to divorces and the rules that guide that process can help those who are preparing for an upcoming divorce in Georgia. Seeking legal guidance proactively can be very helpful as well.