Divorce is rarely amicable. When substantial wealth is involved, the stakes can be even higher. If you are going through a high-asset divorce, understanding the risks helps you better handle a period of increased conflicts.
High-asset divorces have unique challenges
Couples with high net worth often have diverse assets, including real estate, investments, businesses and luxury items. When they decide to call it quits, contention and prolonged disputes are common in certain aspects:
- More assets to divide: Wealthy couples have more property and investments. This makes it harder to split everything equitably.
- Hidden assets: If one spouse tries to hide assets to keep more for themselves, it can lead to mistrust and more arguments.
- Complex financial portfolios: Stocks, bonds and business interests are harder to value and divide. These require expert evaluation.
- Tax implications: Splitting assets can result in significant tax liabilities, which adds another layer of conflict and stress.
- Spousal support: High net worth often means one spouse earns much more. Deciding on spousal support can be a major sticking point.
Wealthy individuals may also have more to lose in a divorce, including their reputation, business relationships and social standing. This can lead to a higher emotional investment in divorce proceedings, making reaching a mutually beneficial agreement even more difficult.
Getting legal help is key
Given these potential conflicts, it is best to approach a high-asset divorce with more care. This can mean hiring a skilled lawyer to help identify and value unique assets, negotiate for a fair agreement and litigate if necessary. This way, you can take on the process with greater ease and protect your financial future.