Brand
Salt Lake City – Ogden – Lehi
Brand
Salt Lake City – Ogden – Lehi

We Fight To Win

Experienced Divorce and Family Law Attorneys Serving All of Utah

Three financial considerations for high-asset divorcees

Although a divorce is an emotional process, it can also be a significant financial transition. During a divorce, an individual may go from a two-income household to one income, or may be asked to pay significant support to their ex and children. Aside from income, divorce divides property and can leave individuals with different asset distributions than what they expected.

The contents of this post should not be read as legal or financial advice. The information contained herein is general in nature and can provide a strong foundation for questions when readers speak with their high-asset divorce attorneys. Valuation, hidden assets, and property division are important themes for individuals who want to protect themselves during their divorces.

The importance of correct valuation during divorce

Valuation involves ensuring that an asset is assigned the correct price at a given time. For example, an investment may have a value of $100,000 one day and a value of $120,000 a month later. Fluctuations in the market, changes in scarcity, and other factors can alter the values of different items.

When getting a divorce, it is important that assets are properly valued. Courts may rely on the stated value of businesses, real property, and personal property to decide how to distribute them between the parties. A high-asset divorce attorney can help their client fight for correct property valuations for their assets.

Identification of hidden assets during divorce

hidden asset is an asset that a person may try to hide from their spouse during the divorce process. The motivation behind hiding assets is often financial, as the hiding spouse generally hopes to secretly retain the asset so it is not included in the property division process of their divorce. Hiding assets is wrongful and harms innocent spouses financially. An attorney who is familiar with dividing the assets of financially secure parties can work with their client to seek out and identify potential hidden assets during their divorce.

How taxes may factor into the property division process of divorce

Taxes are an obligation of both the married and unmarried, but divorce often changes that obligation for a newly single person. For example, if an individual receives an investment account from the divorce and this account produces significant financial gains, this may result in capital gains and altered tax implications for the individual. Similarly, losing a family home and the write-offs that come with owning real property changes what an individual can or cannot claim on their post-divorce taxes.

Divorce has many emotional, personal, and financial considerations that must be protected for the benefit of the parties. It is important that individuals with significant assets seek out representation that both understands and advocates for the financial interests of their clients. High-asset divorce attorneys can provide their clients with advice on questions about valuation, hidden assets, and property taxation that alter their finances during and after their divorces.

Archives

FindLaw Network