Couples who have liquid assets of over $1 million or have $300,000 a year in net incomes are considered “high asset” couples. High-asset couples have unique considerations that need to be sorted out during divorce proceedings. In this article, SAM LAW OFFICE, LLC will explain some of the issues facing Hoffman Estates high-asset couples and what this will mean for their divorce.
When you began your marriage, you owned a modest small business. During the marriage, however, that business became 250% percent more valuable. Since your husband or wife supported you during the time you were making all of that money and your business increased value, they are entitled to some portion (usually 50%) of the accrued value but 0% of the business’s appraisal at the time of the marriage. Hence, your spouse owns 50% of the accrued value of the business.
How do you determine that actual amount? Well, divorce attorneys use business evaluators to determine the value at the time of the marriage and at the time of divorce. The business does not need to be split up, but usually the other spouse is entitled to at least the value of the business at the present time minus the value of the business prior to marriage.
The above situation is what makes high-asset divorces so complex. On top of businesses, there are other assets that need to be appraised. These include:
Of course, the value of these assets is not static. It changes over time. Appraisers consider the risk level and potential to change along with valuations before and after the marriage.
Beyond the division of complex assets, high-asset divorces involve other major economic considerations. Firstly, once the assets are distributed, the recipient will be required to pay taxes on them. Second, each spouse, regardless of their financial contribution to the marriage, is entitled to maintain the lifestyle they had during the marriage. When one individual is the primary breadwinner, this will figure into how property is distributed and how alimony and child support are divided.
Our attorneys work carefully with every client to ensure that we understand what your goals are moving forward. We then advocate aggressively for your interests to ensure your financial future.
The Hoffman Estates high net worth divorce attorneys at SAM LAW OFFICE, LLC have the experience you need to ensure your interests post-divorce. Call today to schedule a free consultation and learn more about how we can help.