January 14, 2025

Divorce can be challenging; sorting out finances often adds to stress. Managing assets, debts, and plans might feel overwhelming, but it doesn’t have to be. With the proper steps and a little support, you can take control of your financial future and set yourself up for a fresh start.

Know Where Your Finances Stand

Before you start negotiating, you must know where you stand financially. In high-asset divorces, there’s often a mix of real estate, businesses, investments, and retirement accounts to consider. Getting a clear picture of what you own and what it’s worth is an essential first step.

Working with professionals like accountants, business valuators, and appraisers can help make sure everything is accounted for and valued. These professionals can also find hidden assets, assess income sources, and give you a solid idea of your property’s value now and in the future so you’re in a better position when it’s time to negotiate.

Organize and Protect Financial Documents

One of the best things you can do during a divorce is to gather and secure your financial documents. Tax returns, bank statements, investment summaries, real estate deeds, and business records are key when dividing assets.

Staying organized will help the process go smoothly and make sure nothing important gets missed. If you can, create digital copies as a backup and team up with your attorney to make sure you have everything needed and ready for review.

Consider Prenuptial and Postnuptial Agreements

Prenuptial and postnuptial agreements can make asset division much easier in a divorce. A prenuptial agreement, signed before marriage, details the division of assets if the marriage ends. In contrast, a postnuptial agreement can be used to address any financial changes that happen during the marriage.

If you have a prenup or postnup, review it with an Ohio lawyer to make sure it’s enforceable. A strong agreement can help you avoid costly legal battles, resulting in a fair division of assets.

Decide What’s Yours, What’s Ours?

In high-asset divorces, determining ownership of assets can be complicated. Marital property includes all the assets you and your spouse gained together during the marriage, and in Ohio, it’s divided in a way deemed fair. Separate property, like assets you owned before marriage or inheritances you received individually, typically remains with the spouse who originally owned it.

Taking the time to document and categorize your assets early on helps you clearly understand what’s up for division, which can reduce confusion and potential disagreements later.

Get Assistance with Complex Assets

Dividing things like businesses, investments, and retirement accounts can get complicated in high-asset divorces.  Determining its worth and future is a major decision if you and your spouse own a business. You might consider selling, buying out your partner, or continuing to run it together.

Investments, like stocks and bonds, need to be assessed individually, considering their current value and prospects. To split retirement accounts without facing penalties, a Qualified Domestic Relations Order (QDRO) is typically required. Having professionals help with these complex tasks guarantees everything is handled fairly and without unnecessary legal issues.

Negotiate for Spousal Support

Spousal support, or alimony, plays a significant role in high-asset divorces. When deciding how much support is fair, the court looks at how long you were married, each person’s income, and your lifestyle during your marriage.

When negotiating spousal support, it’s essential to understand your financial needs and responsibilities. Finding a fair middle ground helps both sides maintain financial stability after the divorce.

Consider Tax Implications

Taxes are a significant factor in divorce and can majorly impact your finances. Selling property or investments to divide assets could trigger capital gains taxes. Spousal support is taxable income for the recipient, and the payer can deduct it from their taxes.

Retirement accounts also come with tax rules—dividing them without a qualified domestic relations order (QDRO) can lead to early withdrawal penalties. Consulting with a tax professional can help you understand these potential challenges, allowing you to plan more effectively during and after the divorce.

Build Your Financial Future

Once your divorce is final, take control of your finances. Create a budget that matches your new circumstances and update important documents like your will and power of attorney to reflect your current situation.

Establishing individual bank accounts and credit lines is another important step in achieving financial independence. These actions provide a solid foundation for rebuilding your financial life after divorce.

Work with Experienced Legal Representation

A high-asset divorce comes with unique challenges. Having a skilled attorney by your side can make a big difference. They can guide you through the entire process, from valuing assets to negotiating a fair settlement. With the help of a qualified attorney, you have a better chance of protecting your interests and achieving a fair settlement.

Take Control of Your Financial Future

Divorce can be tricky, but also an opportunity to regain control over your financial future. By valuing assets properly, keeping key documents safe, using legal agreements, and planning for your next chapter, you can protect what’s most important to you.

If you’re facing a high-asset divorce and need guidance, Michael E. Bryant can help. With extensive experience in high-asset divorce cases, Michael E. Bryant provides the experience and representation you need to protect your financial picture. Contact our office today to schedule a consultation.