To say that divorce is an emotionally (and financially) taxing endeavor is an understatement. One can, however, double or even triple the trouble when the split involves millions of dollars. Calculating a settlement in a so-called ‘high asset divorce’ can be difficult for both the divorce attorney and the client, as Joel S. Seidel and Associates points out.
The Importance of a Valuation Expert
Managing what’s at stake in a high-dollar divorce is near impossible without the input of someone objective. That role best fits the skill set of a valuation expert, who is in charge of examining a couple’s assets and determining the most accurate value assessments possible. These experts are typically affiliated with financial firms, and they would be the perfect companions of a divorce attorney.
It’s understandable that a divorce is an emotionally difficult time. But, with strong emotions come irrational and brash decisions. Among the worst mistakes one party can make in a high asset divorce is choosing to ‘just get out of it all.’
Clients typically say this due to two main reasons. First, they simply ‘can’t stand the spouse anymore.’ As such, they’re willing to give whatever the other wants just so they can push through with the separation as quickly as possible. The second reason is that they’re already committed to someone else, and they think an immediate solution is the best approach. No, these are not the best options. What if one spouse wants literally everything from the other, including the house? Is the other willing to easily give that away? It’s likely that both complicated legal and personal issues will prevent such a decision from pushing through.
In a high-asset divorce, there could be a situation where one spouse is the higher earner of the two. In this case, lifestyle comes into play. Lifestyle analysis is crucial since there are costs involved in maintaining it, and it deserves as much financial gravity as a divorce-related discussion. According to a financial expert, a fair conclusion can be reached by conducting a thorough accounting process, which determines how and where money was spent during the marriage.
High-asset divorces are extremely delicate in terms of finances. There’s always the issue of one gaining an unjust advantage over the other, and it doesn’t matter whether there’s consent in such an ‘agreement.’ Whatever comes, each spouse should get rightfully compensated with a justified division of assets.