Some spouses only acquire a small amount of property during their marriages. They may face a relatively fast and simple asset division process. For others, there may be numerous potential sources of conflict that may complicate property division proceedings. The more resources spouses share, the more variables they have to address when splitting up their property. Those with diversified marital estates that include a variety of different types of assets might find themselves struggling to settle property division matters.
Those with complex marital estates involving a variety of different high-value resources often need help preparing for the process ahead. How can spouses navigate complex asset division scenarios successfully?
By excluding certain resources
Some assets could be separate property. They are not part of the marital estate and belong solely to one spouse. Inherited resources, gifts and assets owned before marriage are sometimes separate property that is not subject to division during a divorce. Other assets, like deferred compensation and retirement savings, may be partially marital and partially separate. Spouses can protect certain assets by showing that they are separate resources based on financial records. It is sometimes possible to eliminate certain debts from the marital estate as well because they represent a separate financial obligation taken on before marriage.
By setting a valuation date
When spouses have complex marital estates, they may jointly own a variety of different valuable assets. From stocks to real estate investments, those assets can be difficult to value. Spouses have to set a valuation date if they hope to agree on a fair market value. By setting a valuation date, spouses can ensure that they accurately value their shared property.
By establishing clear priorities
Negotiation requires a focus on the big picture. If spouses get bogged down in conflict over every shared asset and financial obligation, they may spend months and thousands of dollars settling those disagreements. Those who enter the negotiation process with clear priorities or goals often have an easier time achieving a fair outcome. They can focus their efforts on the issues that truly matter to them while making concessions in other aspects of the divorce.
It is also crucial for those preparing for complex, high-asset divorces to have the right advocacy and information. Securing legal representation can help ensure that people understand their rights and they don’t put themselves at a disadvantage during the divorce process. Employing a fastidious and focused approach may result in asset division terms that both spouses agree are fair given their circumstances.