Ending a marriage is never easy, and when significant assets are involved, the process can become even more complicated. Here in Ohio, divorces involving high-net-worth estates require careful attention to detail and a deep understanding of the financial elements involved. Dividing assets in these cases involves unique legislation that particularly pertains to businesses, stock portfolios, and real estate holdings.
In this article, we’ll discuss how to handle divorce and dissolution of marriage when high-net-worth estates are involved. We’ll also talk about the importance of forensic accountants and appraisers and their methods for valuing expensive assets. At Garretson & Holcomb, LLC, we’re dedicated to guiding our clients through these difficult times with professionalism and compassion. If you are considering a dissolution of marriage in Ohio and are concerned about dividing your high-net-worth estate, call our West Chester Township office today. Our staff can help you protect your assets, decide on a fair division of property, and plan for a better future with a stable financial estate.
Divorce vs. Dissolution in Ohio
In Ohio, there are two main ways to end a marriage legally: divorce and dissolution. Divorce is a legal process where one spouse files a complaint against the other for reasons of incompatibility or for specific faults that break the marriage contract, such as adultery. Divorce is often adversarial, and usually involves negotiation or litigation to settle the various issues involved. For high-net-worth individuals, divorce can become particularly complex, and each party can dispute the valuation and division of their substantial assets.
Dissolution, on the other hand, is a less adversarial process where both parties agree on all terms of their separation before filing the necessary paperwork. This method requires cooperation and mutual agreement, so it is less contentious and typically faster than a traditional divorce. However, for high-net-worth estates, reaching a fair agreement can still be challenging. Forensic accountants and appraisers are often required to provide detailed financial assessments and unbiased asset valuations.
The Impact of Marriage Dissolution on High-Net-Worth Estates
Both divorce and dissolution can significantly impact high-net-worth estates due to the volume and complexity of the assets involved. In both cases, high-net-worth individuals often own intricate financial portfolios that include offshore accounts, business interests, and various substantial investments. Forensic accountants analyze these financial portfolios to uncover all assets, trace hidden or undervalued assets, and provide a comprehensive report of the true financial worth of an estate.
The Challenges of Dividing Substantial Financial Assets
High-net-worth divorces often involve a wide variety of assets that need to be accurately valued and fairly divided. This can include privately held businesses, extensive real estate portfolios, and complex investment accounts, each with its own set of challenges.
Valuing a Privately Held Businesses
Valuing a privately held business is a complex process that involves more than just examining financial statements. Forensic accountants can be used to analyze income statements, balance sheets, and tax returns to better understand the company’s overall financial health. They also evaluate the company’s market position by considering its competitive edge, market share, and current industry conditions. They examine future earning potentials based on past performances and industry trends and present a complete picture of the company’s worth.
Valuing Stock Portfolios
When it comes to dividing stock portfolios, there are several factors to consider. The valuation of stock portfolios doesn’t just consider their current market value; it involves carefully considering the tax implications and how the division will impact future investment strategies.
Forensic accountants analyze these portfolios to determine not only the present value but also future growth potential and tax liabilities. This process ensures that both parties receive a fair share of the investment assets, considering any market fluctuations or investment strategies that may affect their future value.
Valuing Real Estate Holdings
Real estate is another significant component in high-net-worth divorces. Family homes, commercial properties, and vacation homes may all be subject to division. Each type of property brings its own set of challenges, and appraisers must provide an unbiased assessment of the fair market value for each one. They consider current market conditions, location, and potential future value.
For instance, a commercial property in a growing business district might have a different valuation compared to a residential property in a stable neighborhood. Objective assessments like these help ensure that the real estate assets are divided equitably, even when they can’t be divided equally.
Call Garretson & Holcomb, LLC for All Your Family Law Needs
A dissolution of marriage with a high-net-worth estate can be a complicated process. But having a team of experienced professionals can keep things simple. Our skilled divorce attorneys know the complexities of Ohio’s dissolution of marriage laws and can help you navigate the legal and financial issues they involve.
At Garretson & Holcomb, LLC, we provide expert legal counsel to clients in West Chester Township, Mason, and Hamilton, Ohio. Our team works closely with forensic accountants and appraisers to build a complete financial picture, protect your interests, and ensure a fair division of assets.
We are committed to guiding you through the dissolution of marriage process with professionalism and compassion, so you receive the fair and equitable settlement you deserve. If you are considering a divorce or dissolution in Ohio and you’re concerned about dividing your high-net-worth estate, call us today at (513) 863-6600.
