Understanding the difference between high-asset and standard divorces can be confusing. The main way these two processes differ is due...
Understanding the difference between high-asset and standard divorces can be confusing. The main way these two processes differ is due to the valuation and division of numerous and often complex assets.
The skilled lawyers at The Riley Divorce & Family Law Firm delve into the details that separate these two processes, so you can gain more insight into the subtle variances. Here is a basic explanation of how high-asset divorces vary from a standard divorce.
The principles of the Divorce Act Canada’s Divorce Act generally suggest that a couple distribute their marital assets fairly. This does not necessarily mean that the property is split exactly in half. The goal is for the spouses to reasonably accommodate each other’s contributions to the marriage. For most divorcees, assigning a value to the family home, vehicles, and retirement accounts is generally straightforward.
However, a high-net-worth couple is likely to have amassed significant holdings, such as a business, an investment portfolio, and real estate holdings, which a modest-income household may lack. For example, the spouses may have a car collection, which may require a professional appraisal. In this case, our legal team may seek the help of business valuators or accountants to determine the fair market value of this property.
Canadian couples must fully disclose all their assets when filing for divorce. Complex financial instruments, such as cryptocurrency and offshore bank accounts, could add to the dissolution’s complexity. Unfortunately, in a high-asset separation, these potential accounts could also lead to allegations of hidden income or assets from one or both spouses.
With a standard divorce, disclosure may be easier to obtain. However, in both cases, failing to remain fully transparent about your assets could result in severe penalties, such as substantial fines and criminal charges.
Whether a high-net-worth individual wants to send their child to private school or their spouse is in need of support after ending the marriage, there is a potential for disputes. These complexities would likely require an experienced lawyer with specialized knowledge to guide you through the process.
The court is most interested in doing what is best for the children. So, when calculating support, the Federal Child Support Guidelines suggest an amount for basic needs, such as food, clothing, and housing, according to the parents’ income. For divorcees who make over $150,000 (child support) and $350,000 (spousal support), this award may be more discretionary.
Compared with standard divorces, high-asset divorces require an experienced law team who understands the need to hire specialists to assist with complex issues, such as valuation and disclosure. Discover how you may benefit from our knowledge and avoid prolonged litigation by contacting us today.
Our team of caring negotiators at The Riley Divorce & Family Law Firm are skilled in managing complex, high-asset divorces like yours. Whether you and your spouse are in conflict over the fair division of assets or you need advice on another matter related to your separation, we are here to help you 24 hours a day.
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