A Checklist For Your High Asset Divorce

Divorce proceedings can be a daunting experience, both emotionally and financially, particularly during a high-asset or high-net-worth divorce. When a couple is classified as high-net-worth, individually or with a combined income, the complexities become increasingly more complicated. The longer the duration of a marriage, the greater the likelihood of accumulated assets, property, and debts. 

Our checklist for divorce presents financial remedies and a set of procedures that will assist you in disentangling your finances from your partner and regaining your financial autonomy.

Checklist factors to consider in a high-asset-divorce

1. Consider joint financial information: When getting a divorce, it’s important to practice financial foresight and begin tracking your household income and expenses as soon as possible. Understanding a joint financial portfolio will ensure you have critical financial documents ready for legal professionals to assist you with high-asset financial division and coordination. Consider the following documents:

• Inheritance 
• Joint-business ownership
• 401(k)
• Childcare expenses
• Spousal support
• Outstanding credit card statements
• Financial obligations
• Income taxes 
• Property deeds
• Insurance policies 
• Assets
• Retirement and Pension 
• Savings and checking accounts

2. Move from joint to separate bank accounts

All joint accounts – from banking to credit cards – should be closed, as the debt held in such statements applies to both parties, and anyone partner may still be liable after the account is closed. Because debt impacts both partners, debt accumulation can negatively impact individual credit scores. 

3. Update an estate plan

When a couple has drafted an estate plan during a marriage, revising and modifying the document after a divorce is essential; important information, including medical wishes, financial distribution, and inheritance, may have radically changed. A lawyer specializing in estate plan drafting can assist you in estate plan modification. 

4. Evaluation of assets and property division 

High-net-worth couples typically have extensive portfolios and a range of expenses every month. When divorcing, couples must consider:

• College 529 plans 
• Private school tuition
• Assets like vehicles, jewelry, heirlooms, etc.
• Income properties
• Timeshares
• Staff
• Maintenance costs
• Family businesses
• Parenting time and spousal support

What problems arise in a high-net-worth divorce?

High-worth couples going through a divorce can quickly find themselves in an incredibly complex situation. From deciding custody of the children to dealing with expensive assets such as vacation homes, various issues and complexities must be addressed with legal counsel. 

Every case has unique elements and factors that must be examined: from offshore accounts to suspicions about hidden assets, from alimony and child support to prenuptial agreements. Determining the critical legal issues in any high-net-worth divorce is essential for pursuing the most favorable outcome.

Going through a high-net-worth divorce? Contact us today.

There is no one-size-fits-all approach to high-asset divorce, so the best way to navigate toward a resolution is to determine what legal battles will arise in your particular situation. If you are looking for legal representation, we can help. Contact our lawyers today to discuss our high-net-worth checklist with our legal team. We can help you during this difficult and emotional time.