Complex financial issues can make an already difficult divorce process even more challenging. For this reason, assembling the right team for your high-asset divorce is one of the most important steps to take early in the divorce process. Having a trusted team of advisers around you will help you to make good decisions during the divorce process and lead to a more positive outcome overall. Let’s explore the types of complex financial scenarios you might encounter during your high-asset divorce and the essential questions you should be asking your attorney to ensure your team is well-equipped to handle these intricacies.
Complex Financial Scenarios:
Uneven Income Distribution: In a situation where one spouse has been the high-earning primary breadwinner, the financial support structure will need significant adjustment to accommodate two households.
- Question: How can we ensure a fair distribution of income that considers the financial well-being of both parties while allowing each party to maintain the marital lifestyle?
Asset Division: Not all assets are created equal. A $1,000,000 401(k) does not equal $1,000,000 of equity in a home. The complexities of trading assets from different asset classes need careful consideration as there are financial as well as emotional issues at play.
- Question: How can the team help you and your spouse navigate these intricacies and arrive at a resolution that both parties find equitable?
Non-Liquid Assets: In cases involving non-liquid assets like real estate or investments that have high tax implications upon liquidation, it is important to find ways to ensure a fair division without significant financial losses.
- Question: What strategies are available to handle the division of non-liquid assets effectively as tax-efficiently as possible?
Business Valuations: There are unique challenges in business valuations, especially in cases like an LLC with no employees.
- Question: How do you approach business valuations during the divorce process to ensure an equitable distribution of business assets?
Related: Divorce for Business Owners
Valuation of Non-Cash Assets: From jewelry to art to intellectual property, it can be challenging to accurately value non-cash assets and incorporate them into the divorce settlement.
- Question: How can we achieve a precise valuation and equitable distribution of these assets?
3 Additional Questions to Ask Your Attorney
- Are you experienced with resolving complicated financial issues?
- What is your experience with specific asset types? What strategies would you suggest employing to safeguard my financial interests?
- How do you collaborate with financial experts? How will this collaboration enhance the overall financial strategy and outcome of your case?
Building The Right Team for Your Divorce
Attorneys with Financial Acumen: When choosing an attorney, look for someone with not only legal prowess in the area of divorce and family law but also a deep understanding of complex financial situations that are found in high-asset divorces. Attorneys experienced in handling divorces with significant financial complexities can provide valuable insights into legal strategies that align with your financial goals. Look for an attorney who also understands the importance of forming an experienced financial team to help streamline the divorce process to arrive at a fair and equitable agreement.
The Role of a Financial Professional: Recognize the importance of having a financial specialist on your divorce team. A Certified Public Accountant (CPA) or Certified Divorce Financial Analyst (CDFA) who specializes in the financial intricacies of divorce will help you navigate complex financial scenarios such as uneven income distribution, challenges with asset valuation, and business complexities. Their expertise can be instrumental in ensuring a fair and sustainable financial future.
Business Valuation Experts: Explore the factors that determine whether a simplified or detailed business valuation is necessary with the unique aspects of your business in mind. A business valuation expert can help assess the true value of business assets and guide negotiations for a fair division.
Tax Professionals for Non-Cash Assets: Strategic handling of non-cash assets, such as real estate or investments, requires the expertise of tax professionals. Enlist the services of a tax advisor or Certified Public Accountant (CPA) who specializes in divorce-related tax implications. They can devise strategies to minimize tax burdens, ensuring a more favorable outcome during the division of non-liquid assets.
Your high-asset divorce journey may involve navigating through a maze of complex financial scenarios. By asking the right questions and assembling a team adept at handling these intricacies, you can find a path toward a fair and equitable resolution and emerge financially secure on the other side.
Contact Vacca Family Law Group
At Vacca Family Law Group, we understand the unique challenges associated with high-asset divorce and other complex financial issues. Our Collaborative Divorce attorneys can offer tailored advice to help you make informed decisions regarding all aspects of your finances. Call us at 212-768-1115 or contact us online to schedule a consultation.
Vacca Family Law Group is located at One Grand Central Place, 60 E. 42nd St., Suite 764, New York, NY 10165.