How to Approach High-Asset Divorce to Protect Your Assets and Wealth

Arizona ranks No. 17 on the list of the highest divorce rates by state in the nation, and some of these divorces include couples with a high net worth and extensive assets. Divorce is rarely an easy process, but when there are high-value assets or complex property holdings, it can make it even harder to determine how to divide the assets while still protecting as much of the wealth as possible. Those going through a high-value divorce can benefit from the strategies below.

Ensure Financial Transparency

It’s common in high-asset divorces for one party to be more knowledgeable on the value and extent of the assets than the other. Part of the process of asset division involves providing a full and transparent accounting of the couple’s finances. In some cases, this may require hiring a forensic accountant or other professionals to ensure that neither party is attempting to hide or undervalue assets. Making every effort to be transparent in your financial disclosures and holding the other party to the same standard can ensure that you have a full understanding of the assets and are prepared to negotiate a settlement based on that data.

Have High-Value Assets Professionally Valued

Before you can start working on how assets should be divided, you first need to have an accurate understanding of what assets you have and their value. This sounds simple enough, but high-asset divorces often present unique challenges in this area. If you have complex assets, such as real estate holdings, high-value artwork, or business interests, it can be difficult to get an accurate and fair estimate of the marital property. For example, you may need to have appraisals done on real estate or call in an expert who is qualified to value rare or exceptionally valuable artwork. A family law attorney who has experience working with high-asset divorces can help set this up.

Understand Arizona’s Community Property Laws

Arizona is a community property state. This means that all assets that were acquired during the marriage are community property. Only those assets that were acquired before the marriage and were not used as marital property remain as separate property. For example, if you had your own bank account prior to the marriage but you continued to put your pay checks into this account and used this for marital expenses, such as bills, gifts, or travel, the courts may consider this account part of the community property. In general, any community property must be subject to equitable division. If the two parties can’t agree on what this looks like, it could result in the forced sale of assets so that the cash value can be split 50/50.

Arizona’s community property laws are complex, and it can be difficult to understand what’s required by law when it comes to asset division. It’s important to work with a qualified high-asset divorce attorney to ensure that you understand what your responsibilities are and what you’re entitled to as part of the divorce settlement.

Consider Mediation

Many people view divorce as an adversarial event. While this may be somewhat true, the more the two parties can cooperate and agree on the terms and settlement, the more of their wealth and assets they can generally preserve. The truth is that divorce is a costly endeavor, and when it’s a high-asset divorce, a full divorce trial could cost tens or even hundreds of thousands of dollars. Negotiating a settlement outside of a trial, such as through mediation, can save you a great deal of time, money, and stress.

Keep Your Future in Mind

When you’re going through divorce, it’s easy to get caught up in what’s happening now instead of focusing on where you want to be when the dust has settled. As you go through negotiations and asset division, it can help to have a list of what you want your life to look like after the divorce and the most important things that will help you get there. For example, if it’s very important to you to keep the marital home, you’ll likely have to be willing to make concessions in other areas, such as receiving a smaller portion of the liquid assets.

The lawyers at Arizona Family Law Attorneys can help you identify what’s most important and understand what negotiation strategies you can use to achieve that. This also applies to ensuring that you get your fair share of the marital assets and don’t lose out on what you’re entitled to because you don’t want to have conflict. It’s a balancing act, and it’s one that our attorneys are well prepared to help you navigate.

Have Legal Representation

Anyone going through a divorce should have legal representation, but it’s absolutely critical for a high-asset divorce. You need an attorney who understands the complexities of these cases and knows what to look for when it comes to asset disclosure, valuation, and division. Even if you plan on using mediation, you need a legal team that is wholly and entirely focused on representing and protecting your financial interests.

If you have questions about high-asset divorce and what to expect from the process, call Arizona Family Law Attorneys at 480-448-0608 to talk to one of our attorneys.