Divorces not only take a mental toll on spouses, but can take a financial one as well. This is especially the case when the spouses share high value assets like homes, pensions or investment accounts. If you're not cautious in dividing up these types of assets, it's possible that you may either lose valuable assets or not gain rightful access to ones you deserve.
Unless a prenuptial agreement is in place, high-net worth individuals put at risk their high-performing investments, pensions or stock brokerage accounts when property is divided up in a divorce. This is why, despite being illegal, spouses sensing a divorce filing is looming quickly transfer their assets to friends, family members or offshore accounts for safekeeping.
According to 2009 Bureau of Labor Statistics figures, at least 38 percent of heterosexual marriages are lead by female breadwinners. Among similarly married individuals, women earn at least 29 percent more than their husbands do.
Divorces are up among those 50 and older in the United States. In fact, this group's divorce rate has more than doubled since 1990. Perhaps one of the most concerning side effects of this trend is the risk that it poses to retirement or investments that one or both parties may have amassed.
Going through a divorce when you have more assets than the average couple is difficult. You have to figure out how you are going to divide everything up. This can be challenging, especially when there are business holdings, investments and retirement accounts to consider. We know that you might realize how difficult this challenge is going to be, but we are here to help guide you every step of the way.
One thing that you have to do when you go through a divorce is to divide up the property that was part of the marriage. This includes dividing the debts and the assets of the marriage. Before this process begins, you should understand the rights and responsibilities of both sides. You also need an accurate account of all things that need to be divided.
There are some ways that getting a divorce might impact you even years down the road. Your credit report is one of these ways. When you get divorced, you and your ex will have to split everything that is considered marital property. This includes not only assets, but also debts. Here is where things get a bit complicated.
Our previous two blog posts discussed divorce mediation and how this might be a viable option for many divorces. People who are going through high-asset divorces often think that they aren't going to be able to go through mediation. This isn't the case. While mediation might take longer because of the many issues present in these divorces, it is still an option for many people as long as you and your ex can negotiate.
Regardless of how much money you have when you start the divorce process, no one wants to come out the other side broke or worrying about how they will support themselves and any children. No matter what your financial state is before you enter the divorce process, it's critical to understand it fully so you can make the best decisions during it.
When you are dealing with any divorce, your home might be part of what is at stake in the negotiations. Some couples sell the home outright and split any proceeds before moving on. Others work out a deal in trade for other assets or support so that one person can stay in the home, and still others decide that one person will buy the other out of the home. Regardless of how you plan on settling the matter of a house -- or multiple homes -- in your divorce, it's important to know the current market value of the property for negotiations.