Challenges faced by High Income Business Owners going through a Divorce
When business owners go through a divorce, it often involves complex high net worth divorce situations which require the services of a high asset divorce attorney. When the number of assets are high, or if high-valued properties are involved, the divorce can get complicated. High income business owners typically have multiple sources of income. They may have real estate assets which give rental income, as well as other intangible assets. The value and worth of all these assets may be difficult to assess, therefore, only a highly qualified and experienced high asset divorce attorney will be able to help in these situations. An experienced attorney will know how to handle hidden or complex sources of income. The attorney will know which income sources can be exposed and revealed to the other spouse and which ones should be kept hidden.
Astute business owners can find themselves caught in a complex divorce if they have more than one family-owned business, corporation, partnership, trust, sole proprietorship, or limited liability company. They can also be caught in a complex high net worth divorce if they have a real estate portfolio, a brokerage account, multiple leases, and other intangible properties. Government pensions, individual retirement accounts, profit sharing plans and other complex pension arrangements can also make the matter complex. Similarly, the presence of under-secured or unsecured debts, high value assets, and high value properties can all result in complication for the business owner in a divorce. Another thing to note is to be aware of the fact that high valued assets decrease in value as a result of the divorce process, before the divorce process starts and while it is pending.
Distribution of Assets and Liabilities
In a divorce case, most states follow the principle of equitable distribution of marital assets. In order to be able to distribute the assets and liabilities equally, the first step is to properly identify and classify the assets. Each asset has to be classified based on the fact whether it is a marital asset or a non-marital asset. If an asset is acquired during the marriage, it is usually considered a marital asset. However, if certain assets were acquired or received when the marriage was subsisting, they may be excluded from the marital estate.
A high asset divorce attorney will identify all the marital assets and debts and will obtain proper and accurate valuations of each and every asset of the high income business owner. Correctly valued assets that are classified as marital assets will be divided between both parties, whereas hidden or understated assets will deprive the other party of their rightful share. That’s why it is important to make sure that an experienced divorce attorney is hired to go through the process smoothly.
A trained attorney will also be able to identify any hidden or under-valued assets, and will be able to secure the necessary documentation required to establish existence in the court. If you are looking for an experienced divorce attorney in Chicago, contact ‘The Divorce Lawyers’ at (312) 313-9578 to request a Free Consultation.