Emotional reactions are a nearly-universal complicating factor during divorce. Even the calmest, most rational people tend to experience some degree of emotional distress during the divorce process. Many couples also have secondary factors in play that put them at risk of messy, contentious divorce proceedings. Larger marital estates involving complex personal holdings can easily lead to frustrating, protracted divorce negotiations.
High-asset divorces are among the most complicated legal cases litigated in family court. Even in scenarios where spouses settle and pursue uncontested divorces, the negotiation process may take substantially longer due to the complexity of the marital estate.
What challenges are common in high-asset divorce scenarios?
Difficulty categorizing property
Spouses preparing for high-asset divorces typically begin the process with the creation of an inventory of assets and debts. They report all of their resources and financial obligations. They assign an estimated value to their assets. Some resources may be separate property. Belongings owned before marriage, resources designated as separate property in a prenuptial agreement and even inherited assets may remain the separate property of one spouse after a divorce. Spouses may disagree about what assets are separate and which ones are part of the marital estate.
Disputes about asset value
Even if spouses agree readily on what assets are separate and which ones are subject to division, they may disagree about what different resources are worth. Attempting to calculate the fair market value of a broad range of different marital resources can be a challenging process. The amount initially paid for those resources may no longer represent their current market value. Depreciation due to age or appreciation caused by changing market conditions may mean spouses have vastly different ideas about what different assets are truly worth. They may need the assistance of specialized professionals to assess an appropriate value for different resources such as business holdings, real property and collections.
Disagreements about alimony
Spousal support, also sometimes called alimony, can be a point of contention during high-asset divorces. The spouses have enjoyed a higher standard of living throughout their marriage, so they have certain expectations about their finances after divorce. Particularly in cases where one spouse stayed home to manage family affairs or raise children, they may expect the other to provide them with support to maintain a basic standard of living. Spouses may disagree about the necessity of alimony, how much the payments should be or how long the payments should last.
Recognizing that high-asset divorces create numerous opportunities for conflict can help spouses better prepare themselves. People who have adequate support and information about divorce proceedings can prepare for a complex divorce more effectively than those who let their emotions guide the process.
