Divorce can be a trying situation involving a lot of high emotions. When you are divorcing your ex-spouse and dealing with valuable assets, things can become even more complicated.
A high-asset divorce does not just mean you have a high income. It involves the division of significant and complex marital assets, which usually go beyond cash. Assets may include real estate portfolios, investments, luxury items, and even businesses. One or both parties may not know the actual value of the assets, requiring you to involve professionals like forensic accountants or business valuators. An Oakville high-asset divorce lawyer could work with you to address any issues that arise in this type of separation and help you protect your valuable property. Reach out today to begin working with a trusted divorce lawyer.
Some unique concerns can come up in a divorce involving expensive assets. The judge assigned to your divorce case will be focused on the equal distribution of property, a task that can become more challenging when one or both parties are very wealthy or have high-net-worth assets in their possession. Even if both parties agree to an equal distribution, reviewing and determining the value of these assets can take time.
A high-asset divorce presents unique challenges. The first one is valuation. Before dividing assets, you need to know how much they are worth. Forensic accountants and professional valuators can help accurately determine the worth of complex assets such as businesses, investment portfolios, and private equity. Valuations need to be made close to the divorce since the values can fluctuate over time or have future earning potential.
Identifying and dividing separate property and determining whether these assets are subject to division or exemption is critical to an equitable distribution. Many high-asset partners come into the marriage with significant assets, and they may not have protected them with a marital agreement.
Concealing assets is another concern. It is not unusual for one or both parties in a high-asset divorce to attempt to hide income, transfer funds to offshore accounts, or undervalue certain assets. Hidden assets can cost people millions in funds, so a forensic accountant is standard for most of these divorces.
Tax implications are another critical factor, as the division of property—genuine estate, stocks, or other investments—can trigger capital gains taxes, making tax planning essential.
Valuation can bring up significant disagreements. If both parties do not agree, the process can take even longer since it may become a battle of dueling experts. Trust funds, investments, and additional banking accounts could also come into play in a high-asset divorce. There are specific regulations that could apply to these assets. An Oakville lawyer could help a high net worth couple work through any of these scenarios.
In Ontario, the courts follow the principle of equalization of net family property (NFP). The asset distribution is not presumptively even. Instead, the courts focus on determining the increase in each spouse’s net worth during the marriage and sharing that increase equally.
To do this, the court looks at assets as either marital or separate property. Marital property includes most assets acquired by either spouse during the marriage, regardless of who holds legal title. Both spouses share in the value of marital property when they divorce.
Separate property—such as gifts, inheritances, or settlements intended explicitly for one spouse—is generally excluded from equalization. However, if it was co-mingled with joint marital assets, it may not be protected. Plus, some assets are not presumptively safe. For example, the matrimonial home holds special status: even if one spouse owned it before the marriage, if the family lived in the home at the time of the separation, the entire value of the home is considered marital property. An Oakville high income divorce lawyer could help someone facing divorce determine what counts as marital vs separate property.
Prenuptial and postnuptial agreements are a good idea for high-asset couples. These agreements set clear terms for the division of property, spousal support, and other financial matters in the event of a divorce.
When a couple has few assets upon marriage and has built their wealth together, these agreements may not make sense. However, for couples with significant wealth, businesses, or investments, these agreements ensure that pre-marital assets remain separate and are not subject to division, safeguarding family businesses, inheritances, or real estate holdings.
A well-drafted agreement can address many of the concerns linked to high-asset divorces—like protecting against asset concealment. Ensuring both parties are aware of the financial picture from the start not only protects the wealthier partner but also the less wealthy one. Establishing fair and reasonable terms upfront helps both spouses maintain financial stability, protect their interests, and foster peace of mind during the marriage. It is important to work with an Oakville lawyer to ensure any marital agreements are valid and enforceable prior to seeking a high-asset divorce.
The Riley Divorce & Family Law Firm understands how valuable both your assets and your privacy are. Whether you are considering divorce or have already filed the paperwork, you do not have to go through the process alone. Our team of experienced lawyers could help guide you every step of the way, providing the support and reassurance you need to move on to your next chapter.
Because we understand that questions can arise at any time, we have 24-hour availability. The Riley Divorce & Family Law Firm handles everything from conflicts over spousal support to the distribution of marital assets. Contact us today to speak to an Oakville high-asset divorce lawyer and get the help you need to tackle your divorce case. We are here to help you through this challenging time!
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