What Constitutes a High-Asset Divorce in Bentonville?
Some divorces require extra legal care due to large amounts of wealth, investments, or business interests. Asking, “What constitutes a high-asset divorce in Bentonville?” is an important step when learning if you’ll need legal aid on your side. Assets such as expansive investments, company ownership, or multiple real estate properties can turn an otherwise simple divorce case into one that requires extensive knowledge of Arkansas family law.
The Bentonville divorce attorneys at Bundy Law have experience with complex family law cases throughout Bentonville. When large amounts of wealth are at stake in your divorce, you’ll want someone on your side who can advocate to protect your financial interests. Complex divorces often involve extensive property division, meticulous analysis of finances, and professional witnesses who can speak to your particular high-asset divorce situation.
What Qualifies as a High-Asset Divorce?
The United States divorce rate is 2.4 per 1,000 population. The Arkansas marriage rate stands at 7.8, and the state’s divorce rate is 3.0. This is higher than the national rate, with many of these being high-asset divorces.
Essentially, a high-asset divorce case is any divorce that involves large amounts of wealth or complex assets. There is no specific dollar amount that makes a case high-asset. However, many high-asset divorce cases involve marital estates valued in the six or seven figures.
Multiple homes or real estate investments, ownership of a business, high-value investments, and significant retirement funds are among the many factors that can contribute to a high-asset divorce. In Bentonville and throughout Northwest Arkansas, many individuals who work in executive positions or on corporate boards have equity in a company. These types of assets are common in Bentonville divorces.
Arkansas High-Asset Divorce Laws
In Arkansas, courts divide marital property using a standard called equitable distribution. Equitable distribution calls for the court to divide marital property in a way that it deems fair.
When they need to determine how to classify and divide property in a divorce, Arkansas courts use specific criteria for doing so. Factors the court may consider include the length of the marriage and each spouse’s economic circumstances.
These high-asset divorce laws apply when divorcing couples have complicated assets. Business ownership interests, multiple real estate properties, and executive compensation are just a few examples of the types of assets that can cause a divorce to become complex.
Business Ownership in Arkansas Divorce Settlements
In Bentonville, there are many business professionals and executives working for corporate employers or running their own businesses. Owning your own business or being closely affiliated with a corporation can cause your divorce to become quite complex.
The court will need to establish if your business is considered marital property, and then it must decide how to split that value. You may be allowed to keep the business while compensating your spouse with assets of equal value. However, there are times when you may have to give your spouse half of your business or buy them out over time. It’s also possible that the business must be professionally evaluated to determine its worth.
Complex Assets Found in High-Asset Divorce Cases
High-asset divorces are often complex. Not only do they involve larger amounts of wealth, but they often include complex assets that are difficult to value. Whereas many divorces only deal with a family home, along with shared bank accounts or retirement funds, high-asset divorces can involve any combination of the following:
- Family business interests
- Stock options
- Investments and brokerage accounts
- Retirement accounts (401k, pensions, etc.)
- Second homes
- Rental properties
Each of these assets requires careful analysis when going through a divorce. You’ll likely need to hire an accountant or financial analyst to determine the true value of what you own.
When to Hire a High-Asset Divorce Lawyer
Many individuals going through a divorce decide to hire a divorce lawyer. If your divorce involves large amounts of wealth or complex assets you own, you should hire a Bentonville high-asset divorce lawyer for your case.
High-asset divorce cases take time and patience. Your lawyer will need to review financial documents, and they may consult valuation professionals to appraise business interests or navigate complex finances. High-asset divorce cases often have more money at stake. Your Bentonville high-asset divorce attorney can explain your legal rights and options when dividing your wealth.
FAQs
How Are Assets Divided in a High-Asset Divorce in Arkansas?
Arkansas is an equitable distribution state for marital property. This implies the court will attempt to divide the couple’s property fairly but not necessarily in half. Some factors the court may consider are:
- The length of the marriage
- All financial contributions by each spouse
- Both spouses’ earning capacity
- The types of property involved
What Assets Are Typically Involved in a High-Asset Divorce Case?
High-asset divorces tend to include more than just real property and bank accounts. Beyond standard assets, high-value divorces frequently encompass:
- Businesses
- Professional ventures
- Multiple properties
- Investment portfolios
- Stock benefits
- Retirement funds
- Prized possessions, like art or classic cars
Finding and accurately appraising these assets is a key part of the process.
Can Hidden Assets Affect a High-Asset Divorce?
Yes, hidden assets can affect a high-asset divorce, as their absence distorts the calculations on what can be divided. Sometimes, one party to a high-asset divorce tries to hide income or financial accounts during divorce. They may do this to keep that money from being split during property division. Lawyers can work with forensic accountants or financial investigators, who can review records to identify hidden marital assets.
How Can Taxes Affect a High-Asset Divorce Settlement?
Tax implications are often a significant factor in high-net-worth divorces. Splitting up certain assets, like investment accounts or real estate, can lead to tax consequences for one or both spouses. Proper planning and financial forethought can enable marital property to be divided evenly while accounting for each asset’s after-tax value.
Contact Bundy Law Today
If you are going through a high-asset divorce, you deserve a Bentonville family lawyers with experience in handling these types of cases. Bundy Law has that level of experience and the knowledge to assert your rights. Contact us today for more information.
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