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Complex Property Division in High Net Worth Divorces
If you and your spouse share a substantial amount of assets together, your divorce could end up being very complicated. Accounting for all of your property can be a trying task, and disputes about how to divide up that property can slow down the process. When your interests are at stake, reach out to a St. Charles, IL divorce attorney for legal assistance.
A high asset divorce should be handled with care. Shaw Sanders, P.C. has the resources, skills, and legal experience to advocate for you in the process of complex property division. Many clients have spoken highly of our firm in testimonials, praising our "extremely professional and attentive" service, as we always strive to attain the best possible outcome.
How Are Real Estate Properties Divided in High Asset Divorces?
In addition to your marital home, you and your spouse may have acquired other real estate such as vacation homes or rental properties. Depending on your situation, you might be more inclined to sell the property and split up the proceeds or continue to maintain ownership of the property yourself. If you decide to keep the property, you will likely need to refinance to take your spouse’s name off the title and adjust your mortgage.
If you and your spouse cannot agree about how to divide a real estate property on your own, the court will make the final decision. Divorce courts in Illinois use a principle known as equitable distribution to divide marital property (750 ILCS 5/503). This principle prioritizes fair outcomes, taking different factors into account. Among other considerations, the court may consider how much you and your spouse each invested in the property, and how long the marriage lasted.
Business Valuations in High Net Worth Divorces
When a business is considered marital property, it must be properly valued before it can be divided. This is not as straightforward as it sounds, as there are multiple ways a business may be valued in a divorce. Except for unusual circumstances, business valuation professionals are used to estimate the value of a business. The three generally accepted methods of business valuation include:
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Valuing a business based on its fair market value from the sale of similar businesses
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Looking at the business’s income potential in the present and future
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Judging a business’s value by its total assets and liabilities
Our firm routinely works with financial professionals who can help you get an accurate estimate for how much your business is worth.
Why Are Retirement Assets Difficult to Divide in a High Asset Divorce?
During your marriage, any contributions you make to a retirement account – such as a 401(k) or 403(b) – will be considered marital assets. Dividing retirement accounts comes with several challenges, including:
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Determining how much of the value of the accounts is marital vs. personal property
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The value of the account now vs. when the account will be mature
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How to divide the account with the other spouse
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Ensuring division is done properly to avoid penalties for early withdrawal, typically by using QDROs
Before you decide what you want to do about your retirement accounts, talk to an attorney who can help you understand your options.
Contact a St. Charles, IL High Net Worth Divorce Attorney
Navigating your high net worth divorce requires careful planning. To schedule a free consultation with our Kane County, IL high net worth divorce lawyers at Shaw Sanders, P.C., call our offices at 630-584-5550 today.
630-584-5550