The Differences of a High Net Asset Divorce


What makes the high net asset divorce different? In these divorces there are likely multiple assets and asset classes each with their own peculiar issues with respect to putting a value on them, their tax basis and taxability upon transfer, and in some instances, transferability is not even an option. Each of the potential issues has a resolution and a way to be dealt with. For instance retention of experts may be necessary to resolve issues of an assets value, analysis of assets divided in kind such as stock accounts should be done in a manner to equalize the tax basis in the accounts, and non-transferable assets can be awarded to one spouse outright or held as a fiduciary until some future event such as the exercise of stock options.


High-asset divorces also often involve complex compensation schemes set up by employers for key employees or established by a business owner. Understanding compensation plans is critical to constructing a fair and adequate resolution of a high net worth divorce. In addition to understanding the financial complexities of high-asset divorce experience with these types of cases is critical when choosing counsel to guide you in such a case.

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