Divorce can be a painful and complicated process, no matter what your circumstances may be, but a divorce involving significant assets can be even more complex. High-net-worth individuals typically have a greater variety of assets, including international or out-of-state accounts and property. This means the divorce process is more likely to be contested or take more time to resolve.
In these stressful moments, an experienced high-net-worth divorce lawyer can help shoulder the burden and provide the support and knowledge you need to protect your financial future. If you are considering filing for divorce, our law firm is here to help. We focus exclusively on family law, so we have the skills and resources to help clients achieve the best possible outcome in their case.
We have an extensive network of professionals who specialize in high-asset divorce cases. The team at Halligan LLC works hard to make sure clients have the timely information they need. We are always available to help answer any questions about your case. Contact us today for a free consultation.
How Marital Property Works
Colorado law views marriage as a partnership where both parties contribute, regardless of whether one spouse earns more than the other. As such, valuable assets or debts acquired during the marriage are considered marital and are divided equitably upon divorce.
Equitable distribution does not strictly mean a 50/50 split. Instead, it involves a division based on each spouse’s own financial situation, the length of the marriage, and each party’s contribution to the acquisition of said property.
Determining what constitutes marital property in high-net-worth divorces can be complex due to the variety and volume of assets involved. Let’s look at common assets divided in these types of divorces.
Dividing Property in High-Net-Worth Divorces
Dividing marital assets is one of the most controversial and emotional parts of a divorce. Not only can it impact each spouse’s lifestyle after the divorce, but it can also trigger emotions tied to these items and properties. If a couple isn’t able to agree on how assets should be divided, they’ll have to rely on the court system to divide their property.
As with any Colorado divorce, a high-asset divorce involves the equitable division of the marital estate. This includes any assets acquired during the marriage—from homes and vehicles to jewelry, collectibles, wine collections, and investments. However, high-net-worth divorces might involve more complex circumstances.
For instance, if one party receives an inheritance or gift in their name before or even during the marriage, the court will usually consider this a separate property that is not subject to division. However, if the spouse who received the inheritance deposits the money in a joint account or both spouses use the inheritance in another way, the court might count this as jointly acquired property.
Similarly, all or some of one spouse’s retirement assets might be vulnerable to division, even if the retirement account started before the marriage. If the asset increased in value during the marriage, then the other spouse might be able to claim a share of these benefits.
Common Assets Divided in High-Net-Worth Divorces
In high-net-worth divorces, the assets involved often go beyond the typical family home and cars. Let’s explore some of the common assets divided in these types of divorces.
Real Estate: The value of real estate assets, from family homes, vacation properties, and rentals to commercial properties or undeveloped land, can fluctuate based on market conditions, so it’s crucial to get an accurate appraisal during a divorce. Our team works with independent, licensed appraisers to determine fair market value in a property division.
Businesses: If you or your spouse own a business, it can significantly complicate the divorce process. The business may be considered property and subject to division, depending on when it was established and how its value has changed during the marriage. We collaborate with forensic accountants and business valuators to assess the value of the business and determine how it can be fairly distributed.
Investments: Investments, including stock options, bonds, mutual funds, and other securities, can also be subject to division in a divorce. The date of acquisition, source of funds used for the investment, and whether the investment has appreciated or depreciated during the marriage are all factors that can influence how these assets are divided. Our team works with financial advisors to ensure fair and accurate valuation of these assets.
Jewelry: Jewelry is often overlooked in a divorce, but can significantly contribute to the marital estate’s value. Assets such as engagement rings, wedding bands, watches, and heirloom pieces can be considered marital property if purchased during the marriage. However, gifts or inheritance may be regarded as separate property. We work with certified gemologists to appraise these items accurately.
Retirement Accounts: Retirement accounts, including 401(k)s, IRAs, and pensions, are often one of the most significant assets in a marriage. Even if the retirement account was opened before the marriage, any contributions made during the marriage are typically considered marital property. Separating these assets can be complex and may require a Qualified Domestic Relations Order (QDRO). Our team collaborates with financial advisors to ensure these assets are divided correctly.
NFTs: Non-fungible tokens (NFTs) are a new type of asset that can be included in a high-net-worth divorce. These digital assets can hold significant value and may be considered marital property if obtained during the marriage. We work with digital asset experts to accurately assess the value of these unique assets.
Crypto: Like other investments, cryptocurrencies purchased during the marriage are typically considered marital property and subject to division in a divorce. However, their volatile nature can make valuation challenging. Our team stays on track with the latest trends and works with experts to ensure these high-value assets are divided accurately.
Child Support and Custody Arrangements
The main priority for the court in deciding child support and custody arrangements (child custody) is ensuring the best interests of the children. With high-asset divorces, this does not mean that the more affluent spouse will automatically get the kids.
Courts consider a number of issues in determining where the children should live, visitation rights, and how much money each parent must contribute to care for the children.
What If I Signed a Prenup?
In many high-asset divorces, one spouse enters the marriage with more assets than their partner. In these cases, the spouse might ask their spouse to sign a prenuptial agreement before the marriage to protect their assets.
Spouses who sign a prenup might think that it will be impossible for them to access certain assets, but this isn’t necessarily true. A judge reviews the document to verify that it’s valid, and in some instances, these agreements are not legally binding.
If the prenup involved some sort of fraud, such as if one spouse hid some of their assets or forced the other spouse to sign the agreement, then the court might decide it’s inadmissible in the divorce proceeding.
Contact Us Today for a Free Consultation
If you’re considering a divorce, it’s critical to work with a lawyer who focuses on the unique challenges involved in these types of legal proceedings. Led by Colorado high net worth divorce attorney Galvin Halligan, we represent clients dividing marital property with skills and resources to get the best possible outcome.
Our high-asset divorce team provides comprehensive legal support and gives you the tools you need to make the best decisions for you and your family. To get started on the road to recovery, contact Halligan, LLC today to schedule your initial consultation.
Frequently Asked Questions
What makes a high-asset divorce?
These divorces can be more complex than regular divorces due to the variety and volume of assets involved, which may include multiple real estate properties, businesses, retirement accounts, and various types of investments.
How is property divided in a high-net-worth divorce?
Colorado is an equitable distribution state, which means property is divided fairly but not necessarily equally. Factors such as each spouse’s financial situation, the length of the marriage, and each person’s contribution to the acquisition of marital property are considered. In high-asset divorces, it’s essential to accurately value all assets for fair distribution.
How does a prenuptial agreement affect a high-net-worth divorce?
A prenuptial agreement can impact the complex assets in a high-asset divorce. If valid, it can protect certain assets from being considered marital property. However, it must be reviewed by a judge for validity. If fraud was involved in its creation or signing, it might not be legally binding.
What if my spouse is hiding assets?
If you believe your spouse is hiding assets in the divorce, it’s crucial to work with an attorney with extensive experience uncovering hidden assets. From bank statements to financial documents, we work with forensic accountants and financial experts to ensure a fair division of assets in divorce cases.
Can I keep my business in a high-net-worth divorce?
Whether your business can survive a high-asset divorce depends on whether it was established during the marriage or its value increased significantly during the marriage because of the efforts of either spouse. If it was established during the marriage, it might be considered marital property and subject to division. However, some strategies can be employed to protect your business interests.
