Do We Need To Involve Any Other Professionals Or Experts In Our High Net Worth Divorce Case Such As Real Estate Attorneys, Business Attorneys Or Tax Experts?
It depends on the circumstances of your specific case. If you have multiple real properties or income-producing property, a real estate attorney or a realtor specializing in that particular type of real property can help to value it, especially if it’s an income-producing asset that has a cash flow. That is going to look different than simply the sales price of the property. The same principle applies to tax and other professionals. There is a time and a place to use each of these individuals and their expertise. For example, suppose there are potential transfers from one spouse to another, a business divided between the spouses, or one spouse wants to keep a business, and the other one doesn’t. You may need a business valuation expert or even a business broker to assist in establishing the value of that business and the circumstances under which it would be transferred to the other party.
How Will Assets Be Divided In A High Asset Or High Net Worth Divorce?
Florida is an equitable distribution state, which means that assets and liabilities acquired during the marriage are distributed fairly between the parties, not necessarily equally. However, we typically start from a presumption of a fifty-fifty split of assets and liabilities to be fair. There can be many reasons why a fifty-fifty split may not be appropriate. There are many reasons why a party might agree to a different distribution of assets other than fifty-fifty because maybe they want to be finished with the divorce faster, so they’re willing to take a lower percentage of assets. Perhaps they made extraordinary contributions to the marriage and the acquisition of marital assets, in which case, that spouse may feel like they deserve more than 50% of the matrimonial assets.
The parties can agree to a distribution typically when the case comes before the judge. The judge is going to start from a fifty-fifty distribution and work from there.
How Important Is The Filing Date In Regards To Separating Our Assets In A High Asset Divorce?
The filing date of the Petition for Dissolution of Marriage is critical in establishing the identification of marital assets and liabilities in a divorce. The filing date acts as a cut off for the creation of marital assets or marital liabilities, and it is the date the court uses to distinguish marital assets and liabilities from non-marital assets and liabilities. However, the valuation date for marital assets and liabilities can vary. It could be the date of separation, the date of filing itself, the date of mediation, the date of the final hearing, or some other date. The filing date is also used to determine the length of the marriage, and that is a factor for alimony in the state of Florida.
I Own A Business, How Will That Impact My High Asset Divorce Case?
Parties who own a business are required by Florida law to provide specific financial information about that business to the other party, especially if the business is a marital asset or an asset in dispute in the divorce. One of the ways it impacts your high-net worth divorce is that you will have to provide more documents to the opposing party. That may include tax returns, general ledgers, payroll records, or expense records for the business. That can be a little bit touchy, especially if there are other business owners who are not the husband and wife, such as partners or other shareholders.
How Is Debt Divided In A High Asset Divorce?
Debt is typically divided similarly to assets in a high net worth divorce. Equitable distribution takes into consideration both the assets and liabilities or debts of the parties. Marital debts include those acquired from the date the parties got married until the date that one party files a petition for dissolution of marriage. Typically, one party may take an asset that is also encumbered by debt. For example, one party might want to keep the marital home, in which case, he or she would typically also take the mortgage that goes with it. The same thing applies to vehicles. One party may want to retain their car, in which case they would also typically take the debt that goes with that car.
If My Spouse Owns A Business, Can I Be Protected From His Or Her Business Debt When Divorcing?
The answer to that question is going to be dictated by the corporate structure of the business. Most people who are engaging in business have chosen a corporate structure such as a sole proprietorship, partnership, an LLC, or a corporation. The choice of corporate form can be used to shield the business owner from personal liability. If that’s the case in your high net worth divorce, then most likely, you and your spouse may already be protected from personal liability for those debts. However, if you have signed a personal guarantee for business debts, you may still be held liable to the guarantor or the lender for that personal guarantee. Sole proprietorships and partnerships may have different rules regarding shielding the owners from liability. The use of indemnification language in a settlement agreement may also be used to shield one spouse from business or other debts.
For more information on High Net Worth Divorce in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (954) 546-7280 today.