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3 factors that can complicate a high net worth divorce in Georgia

On Behalf of | Jun 13, 2024 | Divorce |

Spouses who have acquired significant property during marriage and who earn substantial marital income often face more complex divorce challenges than the average Georgia couple. As the marital estate grows and diversifies, the challenges that arise during property division multiply exponentially.

Unless there is a thorough marital agreement on record, there is often a lot of uncertainty involved in a high-asset or complex divorce. Equitable distribution rules give judges a lot of discretion if they must resolve property division matters.

Spouses with complex marital estates frequently aspire to resolve their disagreements outside of court, when possible, to preserve their privacy and retain control over the divorce outcome. What unique challenges might stand in the way of those with complex marital estates while preparing for property division negotiations?

The risk of hidden property

The bigger the marital estate becomes, the easier it is for someone with unscrupulous intentions to hide resources from their spouse. People sometimes divert income from joint checking accounts to fund a hidden account elsewhere. They might remove resources from the marital home. Hidden assets can range from vehicles and pieces of furniture to financial accounts and digital resources. Many people need assistance checking for hidden property before resolving their asset division negotiations.

The possibility of dissipated property

Those with larger marital estates sometimes engage in inappropriate behavior misusing marital property or accruing a large amount of debt toward the end of a marriage. Dissipation or the intentional diminishment of marital resources can be a major issue for those with larger marital estates. Lines of credit and high-value marital property can allow for tens of thousands of dollars in financial misconduct or more. Identifying and documenting dissipation is a crucial element when pursuing a fair outcome during a divorce.

The challenge of valuing resources

Diversified portfolios can be particularly difficult to properly address in a divorce. Couples may have invested in businesses and purchased stocks. They may own investment real estate or works of fine art that can be very difficult to properly value. It is sometimes necessary to have professionals determine what certain marital holdings are worth. Knowing the full value of marital property is a key component of the property division process. It matters both during negotiations and during any litigation that may prove necessary.

Preparing for a complex high-asset divorce often requires a careful review of financial records. People who recognize that the process may be more challenging than most can take the steps necessary to secure a fair outcome.