What is Considered a High-Asset Divorce in Arizona?

Divorce can be complex, especially in cases involving high-value assets. Arizona family law attorneys define high-asset divorces as those involving significant property, business interests, real estate, investments, and financial holdings. Typically, a high-asset divorce is one where the value of marital property exceeds a certain threshold, in most cases, $1 million.

Given the unique complexities that call for careful consideration and strategic planning, a lot is at stake when dividing high-value assets. Arizona is a community property state where marital assets must be split equally between the spouses. So, you need to seek legal counsel and representation to protect your rights while fighting for a favorable outcome.

What Are Some Crucial Factors to Consider in High Asset Divorces in Arizona?

High-asset divorces have unique aspects that revolve around marital property. These factors can make the divorce process longer than other divorces. Property division lawyers in Surprise advise that you should seek legal counsel and representation to help you navigate the following issues:

Distinguishing Between Separate and Marital Property

Divorcing couples with high-value assets often have complex financial portfolios with multiple assets. Identifying marital assets is paramount to ensure fair distribution. They include all assets obtained during the marriage by either spouse, apart from gifts and inheritances.

Separate property refers to the assets each spouse acquires before marriage. Surprise property division attorneys explain that these remain with the spouse who owned them before the union. However, if you commingled your separate funds with marital ones, separating them can further complicate the process.

Business Ownership

Most high-asset divorces involve complex business holdings. If only one spouse owns the businesses, the division of the entities can bring another level of complexity as the business and its assets must be identified and valued. The valuation process can be lengthy if the entity operates in multiple locations around the country and has numerous assets.

Property division lawyers in Surprise add that business valuation calls for thorough investigations that require the input of forensic accountants. Once the valuation is complete, the next step is determining how to distribute the portions during a divorce. The process can become contentious, especially if the owner is unwilling to give up their interests in the company.

To retain ownership of an interest in the business, a spouse may have to give up a significant portion of other marital assets to the other party. Skilled property division attorneys in Arizona can evaluate your case specifics and provide valuable counsel to help you fight for your rights.

Tax Implications

Property division decisions in high-asset divorces can have dramatic tax consequences. For example, if you and your ex-spouse decide to sell assets to create a fair split, the proceeds could be subject to capital gains taxes.

Besides, retirement accounts and a significant portion of your high-net-worth estate could attract tax penalties on early withdrawals. Seek legal counsel to familiarize yourself with various tax implications and learn strategies to avoid losing a significant portion of your hard-earned wealth through taxes.

Hidden Assets

Spouses in high-asset divorces may feel tempted to hide some assets from each other to prevent splitting them. For example, if you have an attachment to expensive artwork, jewelry, or a luxury vehicle, you may be tempted to hide the assets due to anxiety over your financial security after divorce.

Arizona family law lawyers advise against hiding assets, as you may lose the item you’re trying to conceal upon discovery. If you suspect your spouse is hiding some assets, let your attorneys know so they can employ strategies to uncover them.

Determination of Spousal Support

Spousal support in high-asset divorces can be emotionally charged as each party strives to protect their interests. However, judges consider many factors in determining fair spousal support:

  • The age and health of the spouses
  • The duration of the marriage
  • The financial needs and status of the spouse requesting support
  • Income discrepancies between the spouses
  • Asset division
  • If one spouse gave up their career to raise the children and care for the home
  • Each spouse’s ability to maintain financial security after the divorce

Privacy Concerns

As a high-net-worth couple, you likely have great influence or status within your community. You may want to protect your privacy during this difficult time through the following strategies:

  • Consider out-of-court settlements through mediation and private negotiations
  • Finalize your agreements and settlements before filing for divorce to reduce the time the public has to access your divorce records.
  • Consider filing anonymously
  • Leave your children’s details out of the divorce documents

Choosing a divorce attorney with experience in settling divorce matters in and out of court is crucial. They will help you prepare for the divorce to minimize conflict and emotional turmoil while fighting for the most favorable outcome.

A Skilled Family Lawyer Helping You Navigate a High Asset Divorce

The key to navigating a high-asset divorce is adequate preparation and expert legal advice to enhance the likelihood of a favorable outcome. Skilled Surprise property division attorneys can work with tax advisors, financial planners, and other experts to guide and represent you to protect your interests and financial future.

The Dodds Law Firm, PLC, hosts knowledgeable family lawyers in Arizona. We have helped clients navigate complex legal family issues over three decades. Our dedicated legal team focuses on ensuring financial stability and security for peace of mind and posterity. We can work with you for a favorable outcome if you’re going through a high-asset divorce. Call us at 623-267-0026 for a 30-minute consultation.