We talked previously about identifying and protecting assets during divorce. For all divorcing couples, protecting net worth is important. Couples with high net worth face a complicated process to divide assets and preserve wealth during divorce.
Connecticut courts divide property equitably — this means that property, assets, and income that are determined to be part of the marital estate should be divided fairly upon divorce. The marital estate includes all property, assets, income, debts, and liabilities accrued by a couple during the span of their marriage.
For many couples, assets include a family home and either a retirement fund or other investment account. While reaching agreement on asset division is never easy, a lack of complex assets and diverse properties allows parties to exit a marriage more quickly with their fair share.
For high-net-worth couples, work is required to accurately identify assets that could include:
- Stock and partnership holdings
- Professional practices or businesses
- Retirement and investment accounts including hedge and equity fund holdings
- Executive compensation, bonus, and retirement packages
- Real estate investments
- Trust and other holdings
Accurate valuation and legal designation of property and assets are important during divorce. Disagreements frequently arise over assets claimed to be separate from the marital estate and therefore not subject to division upon divorce. Valuation disputes are also common.
A financial affidavit is an essential part of any divorce. Under oath, each party discloses specific information relative to his or her financial condition, location of assets, and worth.
A high-net-worth marriage often leads to high-conflict divorce that can drain wealth away from both parties. If you have considerable assets in Connecticut, work with an established law firm to preserve your wealth and your plans for the future.