Some people might tell you that a high-asset divorce is an ordinary divorce with more money at stake. Yet, that is not how we look at it. There are many complexities that most divorcing couples do not have to worry about.
If you’re approaching divorce and you there are a lot of assets involved, here are a few things you need to consider.
High-asset couples keep their money in a wider array of places
Part of the reason you have accrued considerable wealth will be that you know how to make your money grow. You will have diversified your investments across many sources. Some may be overseas. You must track them all down and consider them when dividing your property.
As a high-earner, your wealth can be harder to define
When you have a million dollars in the bank, it is a million dollars whichever way you look at it. When you have a regular salary, that too is unlikely to vary much.
If you are a sports star, a media personality, an influencer or an entrepreneur, your wealth may be harder to quantify. You likely have sponsorship contracts and image rights. They will vary over time. If you are a rising sports star, for example, your spouse may claim that your worth is about to grow. They may want a larger share based on this prediction. Yet, if you suffer an injury, your career could be over in a second, leaving you with bills you cannot afford.
If, on the other hand, you are entering the twilight of your career, your spouse may insist you base your divorce settlement on what you are worth now. Yet once your prowess dwindles, your earning potential may dry up. The same applies if your wealth comes from the companies you own or invest in. Is your business about to become the new Facebook or Google?
It takes extra care to protect your wealth in a high-asset divorce. If you get it wrong, you could be counting the cost for years to come.