Most people in Indiana find going through a divorce challenging. Individuals with a high net worth and substantial financial assets may face additional complications.
A major challenge in a high-asset divorce is the management of the couple’s financial network built over the years. To initiate the divorce process, it is crucial to identify and securely store key financial documents. During the divorce proceedings, the couple’s assets are divided, and locating the financial records can become challenging afterward. Without accurate knowledge of the extent and location of the couple’s assets, they may face unpleasant surprises or prolonged settlements.
Separate and community assets
Knowing the whereabouts of considerable assets is just the first step for a couple. There are various types of assets to consider, including community assets typically acquired during the marriage unless specified otherwise in a prenuptial agreement.
Separate assets, on the other hand, refer to possessions owned by an individual before the marriage, including properties and specific financial holdings. Additionally, certain items received by a spouse during the marriage, such as inheritances, may also be considered separate assets. This could also encompass properties acquired by one spouse in their name and legally kept separate through appropriate documentation.
Individuals with more significant financial resources may have the means to seek legal representation to contest community assets. Many weigh the cost of legal representation against the potential gains or losses from contesting communal assets to decide on their course of action.
Determining the value of the couple’s assets is a crucial step. Each spouse typically hires an expert to assist them in determining the worth of the assets. During a contested divorce, appraisers may work with one of the spouses to locate any lost, missing or overlooked assets.
A high-asset divorce presents unique challenges. But they can be effectively managed to satisfy both parties involved.