Some couples have a relatively easy time dividing their property when they divorce. They already have a written agreement establishing how they should divide their assets or they have minimal property to split. For others, property division can be the most acrimonious aspect of the divorce. They may disagree on what is fair or even what property they have to divide.
Equitable distribution rules leave much open to interpretation and can result in a lot of conflicts during property division negotiations. For those facing a complex divorce involving high-value assets, the potential of property division disputes is significantly higher. For example, the following issues are more likely to arise in a high-asset divorce when compared with those involving minimal property.
Disagreements about property value
When couples share high-value resources, they may have very different ideas about how much their marital estate is worth. One spouse might want to use the purchase price for their home when negotiating property division matters, while the other might want to bring in an appraiser to set a fair market value based on current market trends. They may disagree about the value of vehicles, businesses and personal property such as collectibles. Setting appropriate prices is a key aspect of arranging for a fair property division settlement.
Disputes about separate property
Typically, equitable distribution rules apply to any assets acquired during the marriage and any property purchased with marital income. Spouses may sometimes find themselves disagreeing about which assets are actually part of the marital estate. For example, if only one spouse made deposits into a retirement account, they may resent the idea that they have to share it when they divorce. Factors including commingling can further muddy the waters, leading to spouses fighting intensely over which assets are subject to division.
Increased risk of financial misconduct
There are several kinds of financial misconduct that can undermine the fairness of property division proceedings. Sometimes, one spouse hides property from the other and also from the courts. Doing so can deprive one spouse of their fair share of the marital estate. Those with more property also have more opportunities to dissipate or waste marital property. They could give away valuable assets, destroy property, rack up credit card debt or give away resources that should be subject to division in the divorce.
People often need help conducting a thorough financial review to better ensure a fair outcome when preparing for complex divorce proceedings, and that’s okay. Learning more about the issues that may arise when addressing a high-value marital estate can help people protect themselves so that they can benefit from a fair outcome to their divorce.