If you’re looking into a divorce in Virginia, you may have encountered the term “high-asset divorce,” one many outside the legal profession aren’t familiar with. Its meaning is easy enough to deduce from the name alone: a divorce that involves dividing many valuable assets between former spouses. Still, the exact criteria that place a divorce in that category remain nebulous. You may find yourself wondering: what makes a divorce a high-asset divorce?
What is a high-asset divorce?
The generally agreed-upon definition of a high-asset divorce is one in which the marital estate is comprised of liquid assets exceeding $1,000,000 in value that must be distributed among two people.
Examples of assets that are commonly involved in high-asset divorces include:
- Residential and commercial real estate
- Businesses
- Bank accounts, including retirement accounts
- Stocks and other investments
- Luxury items
The high-asset divorce process itself isn’t much different than that of a typical divorce. That is, until the property division stage. Property division is the stage when a couple’s assets must be valued and split between them. As you can imagine, this process can become quite complex and time-consuming when so many valuable assets must be divided fairly and equitably.
Unique concerns in high-asset divorces
There are several issues and concerns that are unique to high-asset divorces. Those preparing to go through this process should ready themselves for the following:
- Tax consequences of divorce
- Determining spousal and child support payment amounts
- The risk of a spouse hiding assets
- Protecting family heirlooms, gifts, and inheritances
- Executing prenuptial and postnuptial agreements
Getting the proper legal representation is crucial when considering divorce as a high-net-worth individual. An attorney who’s experienced in high-asset divorce matters can guide you through this process confidently and competently, addressing your unique needs and positioning you for a successful outcome.