What is a “high asset” divorce?

On Behalf of | Feb 18, 2023 | Divorce

When a married couple with significant assets between them decides to divorce, this is often described as a “high asset” divorce. 

This can often make the divorcing process more difficult because there is a lot more to consider for both parties in making sure their property, and rights, are protected. 

Is there a strict definition?

Although there is no standard definition of a high-asset divorce, it is generally accepted to apply to situations when the entire value of the marital estate exceeds $1 million.

More significantly, it’s a term that describes a scenario where the financial position of the divorcing couple is more complicated as a result of the significant number of assets, investments, and money they have combined.

Some of the issues that divorcing couples with a high net worth find themselves facing include: 

High asset divorces can also include complex holdings, like:

  • Property, including the marital residence, second homes or investment properties. This may include assets acquired either before or after the marriage.
  • Irregular income tied to a spouse’s position in a company, like bonuses or other rewards provided in connection with their workplace performance.
  • Retirement funds include things like 401(k) plans, individual pensions, and any military retirement benefits.
  • Business endeavors, either individually or on behalf of each party. This could be, among other things, a PLLC or an S Corporation.

There are factors that may complicate the divorce process for an affluent couple. Obtaining legal guidance can give you the best chance of protecting your assets and navigating the process.