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Dealing with a Financially Complicated Divorce
Posted by: Bob Kalish
February 05, 2010
Topic: Divorce
Certain facts in a couple's financial situation can create a complicated situation when divorced is filed. In such situations, it is important to be sure that the attorneys involved in the case understand the financial picture, and have the experience to deal with it.
If a couple has a large, high-dollar marital estate (even if the value is held in "non-liquid" assets), there will be certain steps that must be taken to insure proper valuation and division of the property. This becomes even more crucial in today's economy. This can often be accomplished between the parties and their attorneys, using information that is already available, but in some cases it is necessary to include CPA's, appraisers, financial planners, realtors or other professionals in the process.
Another complicating factor is separate property estates. An issue arises when the parties disagree in how the existence of the separate property should affect the split of the marital property. (For instance Husband wants the marital property to be split 75% to him and only 25% to Wife because she has a large separate estate and he has none. Wife disagrees and wants 50% of the marital estate, as well as her own separate property).
Separate property can also become comingled with the marital property, creating a fertile ground for disagreements.
When there is a disparity in income-earning ability between the spouses, it will need to be addressed as well. Factors that will weigh into this evaluation include education, health of the parties, ability to work, willingness to work, length of the marriage and whether there are minor children of the marriage. Payment of spousal support and child support will be evaluated when appropriate.
Ownership of a business can create its own unique fact pattern. The ability to keep a business running without disruption, while the divorce is pending, and work to insure its continued successful operation after the divorce is final is an important goal.
Assets with value that is not easily determined must be given careful consideration. (For instance, stock options, intellectual property rights and the like).
Fortunately, there are many options available to arrive at resolution. Some of these vehicles are collaborative law, mediation and/or consultation with other professionals.
Proper planning and communication between attorney and client will help insure that all options are considered and that money spent for legal and professional fees will be used wisely.
