How Does Property Division Work in a High-Net-Worth Divorce?

A high-net-worth divorce is a type of divorce involving significant assets, often worth several million dollars or more. These kinds of divorce cases often present complex challenges, especially when it comes to property division. Understanding how property division works in high-net-worth divorce cases is crucial. Generally, when it comes to property division, the same rules that apply to other divorces apply to high-net-worth divorce cases. However, high-net-worth divorces may present unique challenges. Below is a look at how property division works in high-net-worth divorces.

Identifying Assets

One crucial aspect of property division is identifying which assets are marital property and which are separate. Marital property is generally assets acquired during the marriage, whereas separate property is assets acquired before the marriage. In most states, including Florida, only marital property is divided between spouses during divorce.

In high-net divorce cases, distinguishing between marital and separate assets can be challenging, especially when businesses and other investments have grown substantially during the marriage or spouses have commingled their assets.

Valuing Assets

Once it is clear which assets are considered marital property and which are considered separate property, the next step in dividing property in a high-net-worth divorce is valuing the marital assets. Valuing assets accurately is vital. In order to attain an accurate valuation, it may be necessary to hire experts such as forensic accountants or valuation experts. These professionals can provide detailed assessments for real estate, investments, businesses, and other assets.

Equitable Distribution vs. Community Property

After valuing marital assets, the court follows either the equitable distribution or community property principle to divide marital assets between spouses. Most states, including Florida, follow the equitable distribution principle. The equitable distribution principle requires that marital assets be divided between spouses fairly, but not necessarily equally or in a 50/50 manner. On the other hand, in community property states, marital property is typically split 50/50 between spouses during divorce. In states that follow the community property system, spouses are treated as equal owners of marital property, regardless of who earned or acquired it.

When determining what entails a fair distribution, Florida courts consider several factors listed under Florida Statutes section 61.075, including the following;

• The length of the marriage
• Each spouse’s economic circumstances
• Each spouse’s contribution to the marriage
• The intentional depletion, wastage, or destruction of marital assets
• Any interruption of educational opportunities or personal careers of either spouse
• The role each spouse played in earning, growing, or improving income, as well as in acquiring or increasing assets or taking on debts related to assets.

Negotiation and Settling

Negotiating and reaching a settlement agreement is often crucial in high-net-worth divorce cases. Spouses may negotiate to reach an agreement to avoid leaving the decision in the hands of the court. Experienced divorce attorneys play a crucial role in these negotiations. An attorney can protect your interests and ensure your agreement with your spouse is fair.

Contact an Orlando Divorce Lawyer

If you have questions about your high-net-worth-divorce case or need legal help, contact our skilled Orlando divorce lawyers at The Arwani Law Firm.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html