In youth, the popular song by The Notorious B.I.G. claiming that with “Mo Money [comes] Mo Problems” may have seemed like a joke. As we age, we realize that there is some truth in these catchy lyrics.
The realization becomes even more of a reality when going through a high-asset divorce.
Why is a high-asset divorce so difficult? The more assets there are, the more difficult it can be to better ensure a fair division. One aspect of the division to pay close attention to is whether all assets are accounted for and valued accurately.
It is very difficult to get a fair split of assets if an accurate valuation is not present.
What options are there to better ensure a fair split of asset? The fairness of the split can be better ensured through the use of valuation. It can help to have an understanding of the many roles valuation can play during divorce. Three specific examples include:
- Business interests. Arguably the most commonly known use for valuation is the accurate assessment of a spouse’s interest in a business. This can include the review of equity positions and various forms of stock.
- Life insurance policies. As noted by the experts with Forbes, life insurance policies are one of the more commonly overlooked assets during high-asset divorces. This asset can accumulate with the individual as his or her wealth grows. As a result, the policy can be forgotten when crafting a divorce settlement agreement.
- Lifestyle. Pennsylvania state law allows for the consideration of the “standard of living of the parties established during the marriage” when determining a fair division of assets. In some cases it is wise to use a valuation expert to help break down the standard of living into an actual, and accurate, cost. This can better ensure that the division of assets is more likely to support this continued lifestyle.
Although these three examples are important, they are only a small part of the whole. Divorce is a complex process. As such, it is wise for those going through divorce to seek legal representation.