Seeking a Good Outcome in a High Asset Divorce
On behalf of The Law Offices of Cindy D. Sackrin posted in Family Law on Wednesday, June 10, 2015.
Divorce can be an emotionally difficult experience, however, high-asset divorces can involve additional complexities. Parties to a divorce may, at times, act more emotionally than rationally. This can cloud settlement negotiations and even basic financial errors can cost a party significantly in the settlement process and into the future.
One method of minimizing mistaken financial calculations in a high-asset divorce is to utilize a valuation expert. Valuation experts use conventionally accepted methodologies and metrics to assess the value of the divorcing couple's assets. That said, there are different types of assets that couples may own and possess. Valuation experts can help assess partnership interests, the value of a privately held company or one party's stake in a family business for example.
When valuing investment-related interests, however, additional specialized knowledge may be required. I financial expert that specializes in divorce, regularly handles high-value portfolios and has investment management experience may help provide valuable advice in high-asset divorce circumstances. Another important consideration that is sometimes overlooked is the value of life insurance which should be correctly determined and understood. Experts in insurance and trust accounts can sometimes help properly evaluate insurance values.
An additional helpful tool in high-asset divorces can also be forensic accounting to properly understand the couple's lifestyle, how money was spent during the marriage and how assets should be divided and spousal support or alimony determined. Divorces, including high-asset divorces, can be complex but understanding the process and relying on help, such as help from financial and other experts, can be useful to creating a smoother divorce process.
Source: Forbes, "Getting The Most From A High-Dollar Divorce," Russ Alan Prince, Dec. 1, 2014