Navigating a high-asset divorce in Ohio comes with its unique challenges, especially when dividing complex financial portfolios, real estate, and business interests. It is crucial for both you and your counsel to understand the legal and financial intricacies in order to ensure a fair outcome. This blog explores the key considerations in property division, protecting your interests, and managing the emotional and financial impacts of a high-asset divorce.
What is a high-asset divorce?
Divorce in itself is stressful for anyone, no matter how many assets there are to be divided. However, there is a lot more at stake if yours is a high net worth divorce. Additionally, with the involvement of more assets, there is a potential for lengthened and more expensive divorce proceedings due to a likely need of expert valuations and forensic accounting. Some common challenges across the board exist in high-asset divorces when dividing assets like: properties such as the marital home and other real estate investments; ownership rights to businesses jointly owned by the divorcing spouses; retirement accounts, including 401(k) plans and pension plans; hidden assets and shared offshore accounts. In divorces like these, it is best for both parties to seek professional legal representation and guidance to make the process less burdensome.
Legal Framework in Ohio
Ohio is an equitable asset distribution state, meaning that the division will be equitable even if not necessarily equal. Factors such as the length of the marriage, the earning potential of each spouse, and each spouse’s contributions to the marriage are considered when determining the distribution of assets.
Valuation of Assets
Having proper valuations of businesses, real estate, and investments is essential in high-asset divorce. When determining the value of a business, revenue is not the only thing that should be accounted for—experts must also evaluate things such as market conditions, revenue projections, business assets, and cash flow. On the other hand, real estate appraisers consider things such as location, renovations and property improvements, and market demand. Engaging knowledgeable valuation experts ensures accurate valuations and fair division.
Hidden Assets and Forensic Accounting
In a high-asset divorce, there is a higher chance of hidden assets, requiring forensic accounting. Forensic accounting involves expert tracing of transactions and analyzing all financial statements to determine whether or not all assets have been disclosed and accounted for. Forensic accountants look for things such as offshore accounts, undervalued business interests, crypto currency investments, and transfers to unknown individuals or accounts. The testimony and reports of forensic accountants can be crucial in guaranteeing all assets are equitably divided.
Tax Implications
Engaging a tax professional early in the process to advise on the possible tax consequences can protect your interests. When dividing assets such as retirement accounts, investment accounts, and real estate, there can be varying tax consequences if the division or transfers are not done correctly. Relying on the evaluation of a tax professional before agreeing to a settlement can lead to a more favorable outcome.
Protecting Your Interests Through Prenuptial and Postnuptial Agreements
A high-asset divorce is likely to be more straightforward if you have a prenuptial agreement or a postnuptial agreement. A prenuptial agreement is entered into before the marriage and exists to specifically outline asset division in a divorce. Postnuptial agreements are entered into after the marriage and are more easily challenged. If you are entering into a postnuptial agreement to protect your assets, it is important that you seek the help of a legal professional to make certain it will be enforceable.
Protecting Your Interests Through Legal Representation
Just as it is crucial to engage professionals to value your assets, it is also crucial that you select specialized legal counsel who understands the complexity and unique challenges associated with a high-asset divorce. Ensuring that your attorney has experience with business interests, uncovering hidden assets, and utilizing forensic accounting will ensure that your rights are protected.
A Special Consideration: Business Ownership
When a business or a business interest is involved in a divorce proceeding, it is important to address it immediately in order to avoid any diminishment of value or interruptions in the operation and management of said business. Securing legal counsel that understands strategies such as buyouts or restructuring will minimize the impact that the divorce can have on the business itself and make sure that each spouse is still getting the value that they are entitled to.
A Special Consideration: Retirement Accounts and Pensions
When dividing retirement accounts and pensions, you must consider possible tax consequences and compliance with relevant legal requirements. Legal professionals can ensure division of retirement is done correctly and without penalty to protect your financial interests.
Columbus, Ohio High-Asset Divorce Lawyers
As discussed in this blog, navigating a high-asset divorce can be very complex. One of the best ways to protect yourself and your interests is to find legal representation who understands the complexities and has the knowledge and experience to walk you through it. At Borshchak Law Group, our team is experienced in dealing with high-asset divorces and protecting our clients in the process. If you want to guarantee that you are getting everything that you are entitled to under Ohio law in your high-asset divorce, contact us today for a consultation. Let us guide you through the process and fight for you.