What Challenges Are Unique to High Net Worth Divorces?
Posted on October 13, 2021 in Divorce Finances
Couples in Illinois who have worked hard to develop notable careers have also often accumulated substantial assets together. When a couple has liquid financial assets that are worth a million dollars or more, a couple can be considered high net worth. Spouses with a net worth of five million dollars are considered very high net worth while having over $30 million in assets earns a couple the distinction of being considered ultra-high net worth.
Whatever the exact value of a high-net-worth couple’s assets, there is no question that divorce becomes substantially more complicated when such a couple decides to separate. This blog discusses some of the unique challenges that these couples face during divorce.
A Longer Divorce Process
Unsurprisingly, larger and more complex financial assets contribute to a longer and more complex asset division process. The division of assets is notorious for being one of the toughest parts of a divorce, and especially when assets are difficult to value or when spouses cannot agree about how an asset should be divided. Inheritance, and the commingling of individually owned inheritance monies, can compound these problems. The same is true of spouses who attempt to hide marital assets.
Spouses often need to hire financial professionals to disentangle ownership or trace the location of marital assets. Forensic accountants can trace the history of an asset to determine what portion of the asset belongs to which spouse, track a spouse’s expenditures to assess whether that spouse has access to undisclosed financial resources, or determine how much of a joint account is made up of inherited cash. Any of these processes can significantly prolong the length of a divorce.
A Need to Value Unique Assets
In addition to the complexities of dividing liquid assets, high net worth individuals often own assets that can be difficult to value. Collectible items, such as jewelry and baseball cards, may be of significant sentimental value but also of substantial monetary value as well. This can make assessing and splitting the value of individual assets difficult, if not impossible.
Family and personal businesses are often at stake in a high net worth divorce. Valuing a business, determining how much of the business belongs to one spouse or the other, and negotiating how spouses can “buy out” each other’s interests out in complex assets can be very difficult.
A Need for Privacy
Individuals and couples with a high net worth are often public-facing figures who have a compelling need for privacy. Community leadership, political prominence, and high-level business management can all expose divorcing individuals to the public eye. It is important for couples in this situation to hire an attorney who understands the need for a clean and quiet divorce.
Speak with a DuPage County County High Net Worth Divorce Attorney
If you are facing any of the complexities involved in a high net worth divorce, speak with an experienced Wheaton divorce attorney with Andrew Cores Family Law Group. We are intimately familiar with the unique challenges of these divorces and will work hard to make the law work for you. Call us today at Andrew Cores Family Law Group to schedule your confidential consultation. We look forward to showing you how we can help.
Source:
https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000
