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Complications of asset division in high net worth couples

High net worth individuals in Georgia face complications during their divorces that are not common to everyone. These individuals may have assets such as hedge funds and venture capital funds that are not liquid and therefore cannot easily and equitably be divided. Some people may attempt to hide certain marital property so that their spouse cannot ask for their share in a divorce. These are just some of the reasons that asset division is particularly challenging during high net worth divorces.

Oftentimes, partners can agree on who gets homes, cars and certain liquid assets, with one partner possibly giving the other alimony to maintain the lifestyle they're accustomed to. But when it comes to things like partnership interest in a business, couples might not simply be able to buy someone out. The value of the business will likely fluctuate over time, so one partner giving the other a set payment for their share could be unfair.

Another thing to consider with a high net worth divorce is the possibility that some people will dishonestly try to hide assets. Some of the things spouses can look for is evidence that their partner gave money to their family in the form of an interest-free loan. Another possibility is someone asking a family member to spend a large amount of their money on something. Once spouses uncover all the assets that are jointly or individually owned, only then can they sit down and decide how to divvy everything up.

Someone preparing for a split might benefit from a lawyer's assistance during a high net worth divorce. They may be able to help in compiling a list of assets and making up an agreement for how to fairly distribute them, especially when the assets aren't liquid.

Source: Financial Planning , "Finding Hidden Assets: Digging Deep in HNW Divorce", Andrew Pavia, March 24, 2014

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