As many Florida couples have discovered, the divorce process can be a tense endeavor. Extensive wealth will complicate it even more because there are more assets to divide, which typically results in more time-consuming and expensive negotiations.
High-asset divorces need preparation
Couples involved in high net worth divorce will need to first gather all the financial documents needed to begin the process of property division. Documents to be gathered include:
- Tax records
- Bank account statements
- Retirement account documents
- Property titles
Someone who anticipates ending their marriage in the near future may want to gather these documents before they file for divorce. Waiting until the divorce begins might result in some financial documents disappearing and a forensic accountant being needed for the discovery process.
High-asset divorces can become very contentious and expensive
Because there are many assets involved and both parties believe that the investment in time and money to fight for those assets is worth it, high net worth divorces often end up in a court battle. Parties involved in this type of divorce often feel that they have more to gain financially if they fight for their assets, so there is less motivation to work it out amicably.
When the case ends up in court, it can become more expensive. In some wealthy divorces, several assets are in other states or even other countries, which then involves knowledge of the tax and legal consequences of dividing these assets across borders.
High-asset divorces involve higher child and spousal support payments
An additional complication that divorcing couples might encounter is the negotiation of child and spousal support payments. Each state has its own formula for calculating support payments to ensure that the payments are fair and just.
If you are thinking about getting divorced and your family has accumulated a lot of assets, you should consult an attorney about how to prepare. This might help make the process less complicated in the long run.