Challenges of a High Asset Divorces
Breaking up is hard to do. Average divorces is complicated enough. Try divorcing when you have millions of dollars in complex assets. Celebrities, athletes, and business owners may have high asset divorces, which are divorces exceeding $1 million in assets. These divorces are more complicated than your typical divorces because there’s a lot at stake. There are a lot of assets to divide up between the spouses, so there may be disagreements, making them contested divorces. Plus, some assets are hard to split, so they may go to just one person.
Property division in high asset divorces can be more costly and time-consuming. Otherwise, the issues in high asset divorces are the same as in any divorces. Property and debts must be divided. If children are involved, child support, custody, and visitation need to be addressed. Alimony may be considered.
In Kentucky, marital assets are split equitably in a divorce. The spouses can decide to split the assets themselves or the courts will do it, based on factors such as
🡺 Contribution of each spouse to acquisition of the marital property
🡺 Contribution of a spouse as homemaker
🡺 Value of the property set apart to each spouse
🡺 Duration of the marriage
🡺 Economic circumstances of each spouse
🡺 Desirability of awarding the family home
Types of Complex Assets in Divorces
A divorce may include various types of complex assets such as:
• Assets covered by a prenuptial or postnuptial agreement
• Businesses
• Real estate investments
• Executive compensation packages and bonuses
• Deferred compensation
• Stock options and restricted stock units
• Intellectual property
• Personal or corporate investments
• Retirement accounts, including pension plans
• Family inheritance
Some of these assets are not easy to split. For example, retirement accounts may require a Qualified Domestic Relations Order (QDRO). A QDRO is a judgment, decree, or order needed to split up a retirement plan in a divorce. The QDRO must contain specific information, such as the names and mailing addresses of the participant and alternate payee, as well as the amount or percentage of the participant’s benefits to be paid to the alternate payee.
Hiding Assets in High Asset Divorces
With so much property involved in high asset divorces, it’s not uncommon for one party to hide certain assets. For example, a spouse may not disclose a bank account or fail to include certain stocks. This is illegal.
Both parties must divulge all assets. Failure to do so is considered contempt of court and may result in sanctions. The judge may require the spouse who has hidden assets to pay the other’s legal fees. The judge can even grant higher alimony payments. In some cases, a spouse who hides assets can face fraud charges.
Contact Us Today
Divorces can be complex, especially when there are a lot of assets involved. It can be hard to split up everything without disagreements.
If you are going through a high asset divorce, see how Velez Law, PLLC can help. We can handle all family law issues. We can assist you as well, so schedule a consultation today. Give us a call at (502) 586-6030 or click the button below:
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