High asset divorce in Connecticut: Tips for a successful split.
Divorce is always difficult, but those with a high-net worth can face unique obstacles.
September 04, 2013 /24-7PressRelease/ -- High asset divorce in Connecticut: Tips for a successful split.
Article provided by Prince & Cotler LLC., Attorneys & Counselors at Law
Visit us at http://www.wendyprince.com
Divorce is always a difficult process, but those with a significant amount of assets can face an especially complex set of issues. Whether these issues include potentially splitting a business or balancing multiple pieces of property, proactively taking steps during the process to protect your wealth can help better ensure a more favorable outcome.
To begin with, it is ideal for couples that have a high-net worth to enter the marriage with a prenuptial agreement. This agreement will help guide the division of assets if the marriage were to dissolve. In addition to prenuptial agreements, postnuptial agreements are also helpful. These contracts are developed during the marriage and allow the couple to alter the original prenuptial agreement. Like a prenup, postnuptial agreements can address who owns assets and what would happen to a business in the event of a divorce.
Property division basics in Connecticut divorces
If the couple cannot come to an agreement, state law will govern how marital property is distributed. Connecticut follows the rule of equitable distribution. Essentially, this allows a judge to make a fair split. As a result, an equitable split does not always translate into an even split.
The court will review a variety of factors to develop a plan for distribution, including:
-Health and age of each spouse at the time of the divorce.
-Education and future earning capacity of each spouse.
-Length of the marriage.
-Cause of dissolution or separation.
Because of the variety of factors considered, the actual distribution plan varies for each couple.
Property division and high asset clients
Clients with substantial worth can face additional challenges. For those who own their own business, valuations are also required. Before the property determination can be completed, the court must have an idea of how much the business is worth. Valuations can be tricky, since a wide range of components need to be considered. These components can include:
-Goodwill. The ability to generate referrals is often a key part to the success of any business. A professional appraiser should be able to help put a number to this intangible asset.
-Real estate. The worth of the actual property will also be considered in the equation.
-Additional pieces of the physical component. The calculation will also consider tools of the trade. If, for example, your business is a medical practice this could include the cost of diagnostic machines, supplies and software that are owned by the business.
Whether the business was started before or after the marriage will also be taken into consideration.
In addition to determining how to split a business, splitting assets like a portfolio can present unique challenges for the wealthy. These portfolios often contain various stocks and bonds that may mature at different rates. As a result, determining the right valuation and split is a complex matter.
Because of the many issues that can arise for wealthy couples, those going through this type of divorce are wise to contact an experienced Connecticut high-net worth divorce attorney. This professional will work to better ensure your wealth is protected through the divorce process.
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