07Ending a marriage can be challenging in any situation. However, it can be especially complicated if the couple has a high net worth. Some of the mistakes to avoid in a high-asset divorce include not identifying or valuing complex assets, not having or honoring premarital agreements, and transferring assets before an agreement is finalized. Having the right financial advisors and legal support from the start can help you get and stay on track, helping you to strive for a favorable outcome.
For years, the team at Turner Family Law has guided couples who are wealthy or have complex assets and are going through a divorce. We have the training to provide empowering and legally accurate solutions. Our Greenville high-asset divorce lawyers can help you create a plan to identify, value, and divide your assets in a way that aligns with the updated dissolution of marriage laws.
What Qualifies as a High Net Worth Divorce?
A high-income divorce includes couples who have high worth or complex assets. For example, one or both spouses may have business interests, large investment accounts, real property, or trust assets. These assets may have restrictions on their use or have fluctuating value. Having multiple or varied high-worth assets can make it harder to determine the appropriate plan to divide up the couple’s property.
Mistakes to Avoid in a High-Asset Divorce
When the spouses have many assets or assets of high worth, it is imperative for the spouses to make sure to identify, value, and create a plan to distribute them appropriately. Some of the common mistakes that couples may make are not properly disclosing all assets, not honoring premarital agreements in place, and transferring assets before the divorce is finalized.
Failing to accurately identify and value complex assets
One of the mistakes to avoid in divorce is not identifying and valuing complex assets. When couples have a high net worth, they may have many different types of ownership interests. Knowing what they have and what the value is can assist them with efficiently and effectively creating a plan to divide these.
Couples can gather their financial records and reach out to their accountants, investors, business partners, financial advisors, tax professionals, and others to help them get all their documentation together. This will help them know what they have and disclose it to their spouse and the court, which should help move the divorce process forward.
Not honoring prenuptial or postnuptial agreements
Having prenuptial or postnuptial agreements in place can be crucial in a high-net-worth divorce. These agreements are created and signed either before or after the marriage. They describe each person’s assets, clarify what they would like to have these divided in the event of a divorce, and discuss other matters. Under South Carolina law, these agreements may be enforceable if they meet specific requirements, such as both people having their own lawyer and disclosing all of their assets.
Transferring ownership interests before the divorce is finalized
Another problem area may be transferring ownership of property before the divorce is finalized. Generally, the spouses should not hide or hoard assets to try to increase what they get once the divorce is finalized. For example, it may not be advisable if a spouse secretly transfers assets into a trust or to another person (like a friend or business partner) to conceal them from the other spouse.
However, there may be limited situations where the spouses may find it helpful to work together and divide their assets in a way that they agree on before the final settlement. That said, the spouses should consult an attorney to make sure taking this step would be in their best interest.
Why You Need the Right Legal and Financial Team
Having accurate and timely legal and financial advice can be beneficial for all divorces, but it is especially helpful for people going through a high-asset divorce. Financial advisors can value, locate, and evaluate the spouses’ property. They can also develop a plan for how to manage and grow the wealth after the divorce.
Attorneys can provide targeted legal advice and protections, helping the spouses receive what they are entitled to under the law. They can also create or modify trust agreements, real property ownership records, business contracts, and other legal instruments which can help achieve the spouse’s goals.
Contact Turner Family Law for Help Navigating a High-Asset Divorce
If you and your spouse have a high net worth, it is critical to understand what assets you have and are entitled to in the event of a divorce. This can help you create a court-approved plan to equitably distribute these between you and your spouse once the dissolution of marriage becomes final. Common mistakes to avoid in a high-asset divorce include not disclosing and valuing all assets, not following the terms of a premarital agreement, and changing ownership of assets without approval.
An attorney can be a valuable resource, talking you through your options and helping you tailor a marital settlement agreement that is practical and fair. J. Michael Turner, Jr., who founded Turner Family Law, has a long history of assisting clients with developing plans to distribute complex or high-value assets during a divorce. Contact us today by calling 864-778-2734 to set up a consultation and discuss what he could do for your situation, too.
