The term “high asset” is sometimes used when describing a divorce. It’s quite clear that this means the couple has a number of assets between them. What’s not clear is just exactly what a couple needs to have for their divorce to be considered high asset or high net worth in nature.
Is there a definition of a high asset divorce?
There is no set definition of what constitutes a high asset divorce.
Instead, it’s a term that is generally used to describe a situation where the financial position of the divorcing couple is made more complex by the significant amount of property, investments, and money they have between them.
Some of the issues that divorcing couples with significant assets find themselves facing include:
- Valuation of complex holdings, like investments and businesses
- Determining what property is separate and what is shared
- Undesirable tax implications
What assets are considered during a divorce?
- Property: This includes the marital home and any investment properties or additional properties such as holiday homes. This could be property bought or received both before and during the marriage.
- Cash in the bank: Including real cash and investments such as stocks, shares, and bonds. It also includes bonus or performance-related payments received through employment.
- Retirement funds: Such as 401(k), private pensions, and any military retirement payments.
- Business ventures: Either held separately or on the part of either party. This may be any type of entity including PLLCs and S Corporations.
As a divorcing couple with a high net worth, there are considerations that can make the process more difficult. Enlisting the assistance of a specialist in the area gives you the best chance of protecting your assets and navigating the process.