Divorce often requires division of assets, known in New York as equitable distribution. Property division can be particularly complex for high-net-worth couples — those with liquid assets of $1 million or more. Assets in a high-net-worth divorce can include businesses, real estate, investments and valuable luxury items like artwork, jewelry, antiques and classic cars. A common source of dispute in such divorces concerns the valuation of these assets.
Among the most valuable of a high-net-worth couple’s assets is real estate. The spouses may own multiple properties, including primary residences, vacation homes and rental units. These properties can be challenging to value, especially if they are located in widely fluctuating real estate markets. In some cases, hiring real estate appraisers or other valuation experts may be necessary to determine these properties’ values accurately.
Determining the spouses’ shares of business ownership also can prevent difficulties in high-net-worth divorces. The valuation of a privately held business is usually subjective, since no comparable share value can be found on the open market. Hiring a business valuation expert may be necessary to determine the company’s value, including its assets, liabilities and potential future earnings. Also to be considered is the effect of the divorce on the business itself, since it may have to be sold in order to divide its assets fairly.
Investments and other complex financial assets can also be challenging to value. Examples are distributions and dividends from private equity or venture capital funds. These assets may appreciate or depreciate over time, depending on the fund’s future financial activity. Again, valuation experts may be necessary to provide an accurate assessment.
In addition to the valuation issue, high-net-worth divorces may involve complex tax issues. For example, dividing ERISA-qualified retirement accounts, including 401(k)s and certain pension plans, requires special handling in order to avoid early withdrawal penalties.
High-net-worth couples also face more complicated allocations of child support obligations, since the basic guidelines set by law don’t extend to the level of expenditures that wealthier couples must undertake to maintain their children’s quality of life. An experienced family law attorney who is familiar with the special demands of these divorces can help make sure that the allocation of assets and financial obligations is fair and equitable.
Bombardo Law Office, P.C., located in Syracuse, helps clients in Central New York with equitable distribution issues and other aspects related to divorce. Call 1-315-488-5544 or contact us online to schedule your free consultation.
Please fill out the form below. I follow up with my clients quickly and never have to be chased!
Thank you. Your submission has been sent.
Map & Directions
--mi
Syracuse Office
Address
530 Oak St. Suite 102
Syracuse, New York 13203
Bombardo Law Office, P.C. is located in Syracuse, NY and serves clients in and around Syracuse, Liverpool, Camillus, Warners, Nedrow, Cicero, Clay, Marcellus, East Syracuse, Elbridge and Jamesville.
Attorney Advertising. This website is designed for general information only. The information presented at
this site should not be construed to be formal legal advice nor the formation of a lawyer/client
relationship.
[ Site Map ]