Do I Really Need a “High-Net-Worth” Divorce Attorney?
High net worth divorces often involve substantial assets, intricate financial portfolios, high-profile individuals, and business valuations, that require unique investigation and special management. If your individual circumstance requires a nuanced approach, it is important to engage with legal counsel who know how to manage high-net-worth divorces in order to ensure that your divorce is properly managed.
What Are Potential Difficulties?
One of the primary challenges in high-net-worth divorces is inventorying assets. This includes a complete identification and valuation of the assets of the spouses. In standard divorces, assets can be more straightforward to identify: the family home, vehicles, bank accounts, retirement accounts, student loans, etc. High-net-worth divorces, on the other hand, often include complex financial portfolios that require extensive investigation and expert analysis. This could include business valuations and division of extensive stock portfolios and private equity.
Professional Valuation
Many of the unique assets found in high-net-worth divorces require professional valuation. This includes assets such as businesses, stock options, real estate holdings, and rare or valuable collections. These valuations require you to engage with professional experts, such as forensic accountants, business valuation experts, and appraisers. Utilizing these experts will help you to determine the accurate financial value of complex assets, and engaging with them is particularly important if there is a concern that one spouse may otherwise attempt to hide or devalue assets.
Hidden Assets
In high-net-worth divorces, there may be more temptation, and more opportunity, for one or more spouses to attempt to conceal assets. Investigations into suspected undisclosed property can lead to costly, lengthy investigations.
If either spouse believes assets may be hidden, forensic accountants can trace funds, identify undisclosed assets, and ensure the spouses and the court are aware of all relevant financial information.
Taxes, Support, and Business
The division or sale of assets can have significant tax consequences. Engaging with an experienced attorney can help you avoid or minimize unnecessary costs and penalties.
Support, whether spousal support or child support, is not as straightforward in high net worth divorces. Maintaining the high standard of living experienced during the course of the marriage can result in high support payments and consideration of diverse income streams.
Anticipating the division of a business is also complex, and requires consideration not only of physical business assets, but less concrete factors such as the value of an owner’s goodwill, future earning potential, and the impact the divorce itself will have on the business value. Intangible assets, such as trademarks, may also require special appraisal and consideration.
Contact Cardwell Steigerwald Young LLP
Safeguard your financial interests. When contemplating a high-net-worth divorce, you need to seek legal counsel that understands the complexities inherent in substantial estates. The experienced San Francisco high net worth divorce attorneys at Cardwell Steigerwald Young LLP can help you navigate any complexities of your own case with confidence. Contact our office today to begin speaking with our team.
