3 Challenges you May Face in High-Asset Divorce
Facing a high-asset divorce in Colorado can be daunting. While spouses in high-asset divorces must resolve the same basic issues as all divorcing spouses in Colorado, doing so can quickly become complex.
The choices made by spouses in high-asset divorces can have a lifelong impact on their finances and lifestyle as well as inheritance or legacies meant for their children. Knowing the challenges of a high-asset divorce and preparing for them in advance can help spouses avoid divorce pitfalls.
The following article identifies three common challenges spouses are likely to encounter in a Colorado high-asset divorce. For specific advice and an individualized consultation, contact an experienced high-asset divorce attorney near you.
Three Challenges You May Face in a Colorado High-Asset Divorce
Challenge Number One: Hidden Assets or Failure to Disclose Assets
Hiding assets or failing to disclose assets makes a high-asset divorce more challenging, lengthy, and expensive. If you or your spouse fail to disclose assets in your Colorado divorce, you are subject to court-imposed sanctions and penalties.
You should thoroughly investigate your spouse’s asset inventory and use a forensic accountant whenever you suspect your spouse of dishonesty. There must be a reliable accounting of marital assets and debts for an equitable property division to take place.
How property is divided in a high-asset divorce can significantly impact your tax liabilities.
Challenge Number Two: Complex Asset Division
You should consult professionals when identifying and valuing your assets then again before you sign a property settlement. Otherwise, you could saddle yourself with tax liabilities that outweigh the value of your property settlement.
Your high-asset divorce team should include professionals to ensure your current and future best interests are protected. These may include:
- An estate planner;
- A financial advisor or CPA;
- A real estate agent or appraiser;
- Specialty appraisers; and
- A forensic accountant.
Never make emotional property decisions just to upset your spouse or end your divorce quickly. These usually backfire and end in added grief and financial hardship.
Challenge Number Three: Poor Planning or Lack of Planning
You must start planning for your high-asset divorce right away. Immediately start gathering your financial documents and making a list of assets and liabilities.
This includes but is not limited to:
- Bank statements;
- Tax returns;
- Profit and loss statements;
- Investment records;
- Real property deeds;
- Mortgage statements;
- Retirement accounts; and
- Credit card statements.
Secure a copy of your prenuptial or postnuptial agreement. Having all of your records on hand will help your attorney get a clear picture of your upcoming divorce.
Planning for your high-asset divorce is the best way to protect yourself and your future. An experienced high-asset divorce attorney can assist you in the preparation process.
Contact an Experienced Broomfield High-Asset Divorce Attorney Today
The high-asset divorce attorneys at Danielsen Westhoff, PC, are prepared to discuss your divorce goals and expectations with you. We can work alongside you to ensure your divorce decisions are well-reasoned and made with your future in mind.
High-asset divorces require specialized representation. At Danielsen Westhoff, PC, our high-asset attorneys have the experience needed to guide you through your divorce. We also have access to professionals who can assist you with identifying and valuing complex assets.
Reach out to Danielsen Westhoff, PC, in our Broomfield office today to schedule your divorce consultation. In addition to assets, we can address your other divorce concerns like spousal maintenance, child custody, and child support.