Most divorces come with a certain number of financial questions and concerns. In instances where one or both spouses has a high net worth, the potential for these issues can be substantially higher due to how much is at stake. If the total amount of assets subject to division between you and your spouse is greater than $1 million — and especially if there are multimillions worth of marital property — then you are proceeding into what is commonly known as a high-asset divorce.
Because Colorado is an equitable distribution state, all assets that qualify as marital property are divided at the discretion of the court in a manner deemed most fair but not necessarily equal. This means there can be a much greater amount of uncertainty as to what portion of your investment accounts, real estate properties, bank accounts and even equity in a business could be subject to division. Fortunately, there are professional resources readily available to help ensure the best odds of ultimately receiving your rightful share.
Lowering your risk for issues during the division of assets
Your first and sometimes most challenging step before the division of marital property is identifying and estimating the value for all assets owned by both you and your spouse. This should include items owned individually along with any in which you share ownership. After the completion of this step, you will need to determine which assets qualify as separate property and which qualify as marital property. There also needs to be consideration for any third-party claims — from children or a sibling for instance — to a portion of certain assets.
Unfortunately, there are many examples of high-asset divorce cases where one of the spouses has certain hidden assets that he or she fails to disclose. Examples of this can include such things as offshore bank accounts, artwork, jewelry and real estate property purchased with minimal to no paper trail. Due diligence along with professional guidance by your side can help prevent a situation in which certain qualifying marital assets go unaccounted for.
Other important issues to take into consideration
When preparing for all the intricacies of your high-asset divorce, there are other critical aspects for which you may need to account. Potential tax repercussions, the amount of marital debt that will also be subject to division and possible child support payments are just some of the things that could have a substantial impact on your financial future. By being proactive along with taking advantage of the support available to you, you can minimize potential complications while also increasing your chance at a smooth transition into the future.