How To Approach a Unique High-Asset Divorce in Illinois

 Posted on August 17, 2021 in Divorce

Divorce is often coupled with significant frustration, conflict, and expense. It may seem easier for wealthy couples to get divorced due to their financial stability. However, high-asset divorces often involve distinct obstacles, including how to appropriately separate the spouses’ assets. Each party involved in a high-asset divorce should be well aware of the divorce’s consequences and prepare themselves, their loved ones, and their assets accordingly.

Factors to Consider in a High-Asset Divorce

Divorce poses unique challenges for wealthy couples due to the accumulation of assets throughout their marriage. The couple’s worth will likely dictate many factors of their divorce.

Firstly, it is possible that each spouse may want to pursue the use of financial experts throughout the divorce process. These experts will be able to determine how much the shared assets are worth. If there is a business involved, the experts will help to establish whether either or both of the parties have an ownership interest. Additionally, if either spouse is concerned that there may be hidden assets, a forensic accountant can analyze previous financial transactions.

Specifically for high-asset divorces, the ex-spouses may face significant tax consequences. The tax landscape regularly changes, and it is critical for divorcing spouses to be aware of strategies that will help to avoid paying more taxes than necessary. A knowledgeable divorce attorney can provide guidance in preventing this unnecessary burden.

Child support is also handled differently for high-asset divorces. Typically, if the divorce goes to litigation, wealthy divorcing couples will have less insight into the amount of child support a judge may order. Additionally, child support in these cases may include expenses such as private school and/or college tuition.

The distinction between marital property and separate property can lead to substantial conflict in high-asset divorces. Marital property typically only includes the property earned throughout the marriage. However, it should be noted that if one spouse receives an inheritance during the marriage, this will likely be considered separate property.

Other factors that divorcing couples may want to consider if they share a substantial amount of assets are:

• Pre- and postnuptial agreements

• Real estate holdings

• Retirement assets

• Assets owned abroad

• Trusts

Best Approaches to a High-Asset Divorce

Because high-asset divorces can include unique challenges, it is important for each ex-spouse to be well prepared for the obstacles in front of them. This includes establishing a list of all known assets and then making the proper distinctions between separate and marital property. Additionally, it is in the best interest of each individual to maintain the privacy of the court filings. It is also highly recommended for divorcing spouses with high assets to each seek separate legal representation. High-asset divorce attorneys can help to determine the marriage’s shared assets and which assets each party is entitled to.

Contact Our Batavia Divorce Lawyers Today

No two divorces are the same; however, high-asset divorces are particularly distinctive in their challenges and important considerations. Working with our Kane County divorce attorneys could prevent you from overspending or losing the assets you are entitled to. Contact McSwain Rapp Law, LLC to set up a free consultation by calling 630-581-2877.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000