What Are Complex Assets in High-Asset Divorce?
Sometimes, divorce can be simple, where the parties do not have a lot of assets to divide or value. Also, having no children in the relationship makes it easier because you will not have to negotiate child custody, visitation, and child support. However, some divorces can be extremely complex merely due to the number and complexity of assets involved.
Every asset or property has to have a value placed on it, which is why a high-asset divorce can be more complex. A high-asset divorce is any divorce between two individuals who have many assets that are worth a lot of money. Usually, because of the complexity of the assets and the need to place value on them, the divorce can become complicated and take a long time.
The parties will have to agree upon a person to do the appraisal of a property as well as the method of valuation that should be used in a high-asset divorce. There are different methods of valuation depending upon the type of asset. This negotiation alone could take months, especially when it is very important to get the most accurate value and the asset could be worth millions of dollars. If there is a dispute between the parties regarding an appraisal of an asset, the judge handling the case would be the ultimate decision-maker as to the value of the asset.
Here are some examples of expensive assets that can make a high-asset divorce complex.
Real estate is usually one of the largest assets that they own, whether it be their residence or vacation homes. In a high-asset divorce, the parties, attorneys, and the court will often have to address the value of multiple properties. There will be residential properties, vacation homes, city apartments, condominiums, or even land. Each property will have to be appraised by one or more professionals.
Stocks and Other Financial Investments
Evaluating the value of a financial portfolio is more complicated than just looking at the bottom line on a particular day and plugging in whatever number you see. Placing the value on a particular company’s stock is more than just looking at the stock price for a particular day. It could also include insider knowledge that the outside markets do not know about. For example, suppose the parties are part owners of a company with 50 percent of the outstanding stock, but the company will be offering a promising new product in six months. Should the potential rise in value in six months due to the new product be part of the valuation? That is a good question that will have to be addressed.
The valuation of a company or business is probably one of the hardest steps to do. There are so many issues that go into an accurate valuation of a business that it could take months to come up with a figure. Here are the various items that have to be considered when placing a value on a business:
- The value of company’s assets.
- The amount of revenue the company earns on an annual basis.
- The business’ price-to-earnings ratio.
- Evaluate the company’s discounted cash flow analysis.
- Place a value on the company’s good will.
More and more divorce lawyers are seeing digital assets, such as cryptocurrencies. Not only do you have to first understand them, but you also have to understand how something like bitcoin is created, valued, and stored. However, there are other digital assets that could have a more intangible value. For example, suppose one of the spouses has a large online following and is considered an “influencer” online. This has a certain value to it, much more than merely the cash that the person makes from ads, endorsements, and other sources. A divorce lawyer will have to come up with a reasonable value to place on these digital assets and make that value a part of the proceedings.
With high-asset divorces, there is always more of a chance that one of the parties will have hidden assets. One spouse may want to keep the assets. If there is a potential that your ex-partner is hiding assets, then you need to have a lawyer on your side who has the knowledge, skills, and resources to investigate and locate any assets that may be hidden.
A lawyer could require a forensic audit of your entire financial history as a couple. The idea would be to track all of the incoming and outgoing money. Here are some examples of hidden assets to look out for in a high-asset divorce:
- Restricted stock.
Marlton Divorce Lawyers at Goldstein & Mignogna, P.A. Have the Knowledge, Skills, and Resources to Represent High-Asset Divorce Clients
If you are considering a divorce that will involve a large number of high-net-worth assets, our Marlton divorce lawyers at Goldstein & Mignogna, P.A. can help. We know the divorce laws and procedures and we have the resources to fully investigate and value all of the assets. Call us at 856-890-9400 or contact us online to schedule an initial consultation today. Located in Marlton, New Jersey, we serve clients throughout South Jersey, including Burlington County, Camden County, and Gloucester County.