The higher your net worth climbs, the more of a headache divorce becomes. Even for couples with fewer assets, asset division takes time and often invokes plenty of arguments.
Keeping some tips in mind when facing asset division can go a long way in terms of handling the divorce itself.
Keep an eye out for asset hiding
The first tip? As Minnesota State Legislation puts it: remember your entitlement to an equitable portion of shared assets. Thus, you should keep an eye out for a spouse attempting to hide assets. Large and uncharacteristic purchases or sudden payments of an unknown debt could serve as red flags that your partner wants to deprive you of your fair share.
Get the right valuation
Next, make sure to get an accurate valuation. High-net-worth couples usually have fairly complicated assets to sort through. This can include things like intellectual property, real estate or businesses. Having an independent valuation of such assets will give you a number to go into negotiations with, which is always a bonus.
Sell assets with taxes in mind
Finally, make sure to keep your taxes in mind. Some investments and properties are not so easy to split. You could instead consider liquidating those kinds of assets and splitting any profit garnered thereafter. You should remember to take the taxes accrued during the process of selling any high-value asset into account.
Of course, even knowing these tips, asset division will still take time. Patience is key in ensuring that all assets get properly sorted, categorized and equally split between both individuals.
