When it comes to your divorce, you may be finding it too difficult to focus on anything other than your emotions, and that’s understandable – divorce is an emotional ordeal. You are likely experiencing an immense feeling of grief over the loss of this significant relationship in your life, or anxiety and uncertainty over the future, or even guilt and self-blame over the upheaval caused to your children’s lives (if you have them). 

However, it’s important to find ways to cope and work through your emotions so that you can also focus on other aspects of your divorce, like your finances. If you and your spouse have assets of particularly high value, especially if they go beyond the traditional marital assets, the process of identifying, valuing, and developing a strategy for dividing those assets will take up a substantial part of your divorce proceedings. 

Specialized expertise may be necessary in order to accurately assess the value of your marital assets and determine the most equitable method of distribution. Tax implications and future income streams must also be carefully analyzed in order to protect your financial interests and secure your post-divorce future. 

As Florida practices equitable distribution when it comes to asset division in divorce, it’s crucial that you understand this process. While assets acquired during the marriage are divided fairly, that does not necessarily mean they will be divided equally. If you’ve primarily been the higher-earning partner throughout the marriage, you may be concerned with losing assets that are significant to you or getting an unfair financial settlement. 

In this blog, we’ll explain the process of dividing high-value marital assets in Florida and help you understand how you can achieve your financial goals in divorce. 

Understanding Non-Traditional Assets And The Challenge Of Dividing Them

To consider non-traditional assets, it’s important to understand what assets are typically thought of as “traditional” for a couple to bring to their divorce proceedings, like bank, brokerage, and retirement accounts, vehicles, a marital home, and the like. Sometimes, what is considered to be a “non-traditional asset” may also be referred to as an alternative investment. This may include things like:

• Cryptocurrency
• Offshore accounts
• Online income
• Social media assets
• Digital intellectual property
• Digital storage
• Real estate
• Fine art and collectibles
• Gold and precious metals
• Commodities
• Lending 
• Crowdfunding
• Private equity
• And more. 

There are several reasons these kinds of assets pose a challenge in divorce proceedings. For example:

1. The asset may not be able to be easily valued
2. The asset may be illiquid, meaning it cannot be easily converted into cash
3. There may be tax consequences that need to be carefully considered
4. The asset may generate future income streams, such as royalties, rental income, or partnership distributions
5. The asset may hold significant emotional value to one or both parties
6. The asset is may be hidden
7. And more. 

Working with an attorney who is exceptionally skilled in high-net-worth divorces is absolutely imperative when you are bringing non-traditional assets to the table. 

Identifying And Valuing Non-Traditional Assets

Both you and your spouse are required to compile a list of your marital assets, as well as gather documentation that relates to each non-traditional asset, such as financial statements, tax returns, property deeds, business valuations, appraisals, stock certificates, partnership agreements, licensing agreements, and any other relevant paperwork. A seasoned attorney can assist you with gathering these items and may also investigate financial records, complete discovery requests, consult with forensic accountants, and more. 

Once you and your attorney have identified the assets, you can move forward to valuing them. This will likely require outside professional financial expertise, such as that of a certified valuation analyst, financial advisor, or professional appraiser. Additionally, you’ll want to consider working with tax professionals or tax attorneys to evaluate the tax implications associated with dividing these non-traditional assets, including capital gains taxes, gift taxes, estate taxes, and other potential tax liabilities.

Developing A Strategic Divorce Plan

Before concerning yourself with “who gets what,” you must first determine whether an asset is jointly owned, individually owned, or owned through a partnership, corporation, or trust. Then you and your attorney can begin to devise a plan for dividing up the assets in a fair and equitable way. Some possible strategies include:

• Trade-offs and offsets – by “trading off” or “offsetting” assets, you and your spouse may be able to come to a mutually beneficial agreements; for example, they may agree to relinquish their interest in a business in exchange for a larger share of the real estate or the investment accounts
• Buyouts or buy-sell agreements – for some assets, one spouse may be able to buy-out the other’s interests or holdings, or both spouses may agree to sell to a third-party and split the proceeds
• Asset partitioning – this may involve dividing physical assets, such as real estate or valuable collections, into separate shares or establishing separate ownership interests
• Deferred distribution – structuring a settlement agreement to include provisions for future asset distributions, such as contingent payments or future buyouts
• Creative strategies – depending on each couple’s unique financial circumstances, profit-sharing arrangements, licensing agreements, or other financial arrangements that accommodate the interests and goals of both parties may be beneficial

Negotiating Fair Settlements

Many couples who have a high net-worth prefer to engage in alternative dispute resolution methods like mediation or collaboration to reach agreements in their divorce, so that their personal and financial affairs do not become available to the public or revealed by the press. Both of these methods require the couple to be willing to work together in good faith without sabotaging the process or refusing to cooperate.

If neither of these methods are appropriate for the couple, whether that be because there is too much conflict between them, one spouse has been discovered to have hidden assets, or another reason, they must negotiate the division of their assets through traditional litigation. There are a number of strategies that a seasoned attorney can utilize to prevent the other spouse from hiding or dissipating assets while they are in divorce proceedings, such as automatic orders. 

Trust Men’s Divorce Law Firm To Help You Confidently And Effectively Divide Your Complex Assets

For over 20 years, our firm has been aggressively representing husbands and fathers in all manner of family law issues. We know how unkind the family court system can be to men and strive to pave the way for a brighter future. We understand how important it is for you to protect the assets you’ve worked hard to accrue, so we will take care to prioritize your financial goals and fight for an equitable outcome. Call today to book a consultation with our experienced professionals and learn more about how we can serve you!