Cutting Edge Solutions...

Old Style Service And Values

Attorneys Vic Hill and Brad MacDonald

3 things to pay keen attention to during a high-asset divorce

When it comes to divorce, if substantial wealth and assets are involved, the stakes are generally higher for both spouses than they are during “average” divorces.

Unlike typical divorces, where assets may be limited to a family home, vehicles and savings, high-asset divorces often involve significant holdings such as businesses, real estate investments, stocks, intellectual property and offshore accounts. Therefore, when anticipating a high-asset divorce, it is crucial to acknowledge that the dissolution of such a marriage may involve unique concerns and require uniquely detailed strategic approaches to match.

Privacy concerns

Maintaining privacy is paramount during a high-asset divorce, especially for individuals with substantial public personas or those involved in sensitive industries. The public disclosure of financial details can tarnish reputations and attract unwanted attention from competitors, media and opportunistic parties. To safeguard privacy, couples embarking on a high-asset divorce should explore alternative dispute resolution methods like mediation, which offer confidentiality compared to contentious court battles.

Valuation of assets

Accurate valuation of assets lies at the heart of a fair and equitable property division in high-asset divorces. Unlike tangible assets with readily ascertainable values, determining the worth of complex assets like investment portfolios, real estate holdings and trust funds demands specialized expertise and comprehensive analysis.

Collaborating with financial professionals adept in asset valuation methodologies is essential to help ensure transparency and accuracy. Thorough documentation, including financial statements, tax returns and asset inventories, facilitates the valuation process and can minimize disputes over the true value of assets.

Uncovering hidden assets

One of the most contentious issues in high-asset divorces is the discovery of hidden assets, where one spouse may attempt to conceal wealth to diminish the other party’s entitlements. Hidden assets can manifest in various forms, including:

  • Offshore accounts
  • Shell companies
  • Undeclared income
  • Concealed investments

To uncover hidden assets, forensic accountants employ investigative techniques such as forensic auditing, asset tracing and lifestyle analysis to identify discrepancies and irregularities in financial records.

Navigating a high-asset divorce requires a systematic approach to address the unique challenges posed by substantial wealth and complex assets. Given all that is at stake, seeking legal guidance is generally the best way to get started.