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Pre-Planning Goes a Long Way in a High Asset Divorce

On Behalf of | Apr 26, 2019 | Divorce

Are you considering a divorce in North County San Diego and concerned about significant assets such as investment or trust accounts, retirement accounts, real estate, business interests, and valuable collections?  Pre-planning goes a long way in a high asset divorce in Carlsbad, Rancho Santa Fe, Encinitas, Oceanside and Vista.  How are substantial assets handled in a divorce, and what can you do to accomplish the best possible outcome in your case?

Divorce cases involving significant assets are usually resolved without having to liquidate holdings or business interests. However, the marital or community property interest in those assets must be fairly divided between the parties based on numerous factors including the length of the marriage itself.  This is usually accomplished by using specific assets to “offset” the value of another.

For example, the business ownership interest in an LLC for one spouse might be offset by an investment account (or a portion of that investment account) which is awarded to the other spouse.
The tax implications of transferring or selling different assets can have a profound impact on the net value post tax.  Differing assets each have a unique tax “basis.”  You might own two separate groups of stocks both with a value of $100,000.  However, one stock may have a basis of $40,000 while the other may have a basis of $80,000.  If one were to liquidate both holdings the net value of each stock group would be significantly different after tax, even though the valuation of both assets pre-tax is $100,000.

Pre-planning goes a long way in a high asset divorce and the experienced divorce attorneys at Burke & Domercq have extensive expertise in large asset cases.  We work with our clients to pre-plan so that assets can be properly classified, and the valuation process can begin.  Assets such as a business ownership interest are divided based upon independent valuation of the interest.  There are several methods available to determine actual valuation of assets in a divorce and we work to protect our client’s interests while working toward an equitable solution.

If you are considering a divorce that will involve substantial assets we invite you to contact us or call 760-389-3927 to schedule an appointment with one of our experienced attorneys. We will analyze your unique circumstances, discuss your priorities for the coming divorce and evaluate strategies that may help to put you in the best position moving forward.