Dividing up marital property with your spouse in an upcoming divorce will likely be a greater headache if you own highly valued and complex assets. This is because you will have more legal questions to worry about.
As Smart Asset points out, there are three major issues regarding the law that you should watch out for if you are heading for a high-asset divorce.
The greater number of applicable laws
High-asset divorces can involve multiple forms of wealth. Depending on your situation, you may possess some or even all of the following:
- Holdings in another country
- Multiple homes
- Multiple properties and/or businesses
- One or more trusts
Given what you may own, different laws and many sections within a law could apply to your accounts, investments and properties. If you operate a charity or give to a charitable organization, you will have even more legalities to consider, which will add more time and effort to your divorce.
Having multiple properties in different states or countries means the divorce laws of other jurisdictions will probably apply to your property. You may have an entire other divorce code to deal with.
The difficulty of applying the law
The amount and complexity of your assets may also make it difficult to determine how to apply the law to a given asset. For example, you might have a piece of property that will probably invite some taxes, but you are not certain how to define the land or building for tax purposes. Valuation of property can also be difficult.
These complications make it important to plan for your divorce as best you can before you hit the courtroom.