Why would a couple getting divorced need a whole team of people to protect their assets? Because some marital estates are more complicated than others. If it’s a high net worth divorce, or one or both parties run businesses, or if their assets are more complex than is typical of couples, it’s worth it to bring financial experts into the discussion.
But not all divorces are alike. In cases involving lots of assets, unusual assets, or business valuations, the first step is just figuring out what everything is worth. We bring in a qualified expert to do what is known as a forensic evaluation to look at all parts of the marital estate. We can’t determine how to fairly distribute the assets if we don’t know the value of all the assets.
“Each person in a divorce can go into it with a completely different understanding of what the assets are really worth,” says Rick Soat, a CPA here in San Antonio who we involve with some divorces. “By coming in and giving the couple a valuation on what the estate is really worth, they can then move forward on figuring out how to split it fairly and without disruption to any illiquid assets.”
We also work with tax lawyers that we work with on these cases. It’s good to know what assets are worth in determining how to divide an estate. But without knowing what the effects will be on each person’s taxes, a couple doesn’t have all the information they need to make a fully-informed decision about their finances.
There’s one other goal that we have in putting a team together: Making sure that people don’t lose a sizeable part of their estate in fighting over it. There can be a lot of hatred that comes with these kinds of divorces, and there doesn’t have to be.
Many high-net-worth divorces can be best resolved in the collaborative process. Collaborative divorce allows for creative, tailor-made solutions to the unique issues a high-net-worth estate can bring up. An experienced financial team can help couples arrive at a plan that preserves more wealth for themselves and their children, especially for couples that have a range of assets allowing for multiple solutions.
There are horror stories right here in Texas about couples that have spent literally millions on divorces, only to have the judge rule in a way that either is the same or worse than what we could help them construct. If you have a large estate in the balance, you owe it to yourself, your children, and your legacy to not sink it into a legal battle. We have a team ready to help you arrive at a divorce solution that protects your wealth.