There is something very concerning about the state of many high asset marriages these days. This is the fact that many of these marriages don't have a prenuptial agreement in place. Some people might not have realized that they would need this agreement one day. What can follow is a tragedy that includes a contentious divorce settlement.
One of Florida's top "power couples" had everything that a lot of people dream about: health, personal recognition and plenty of material wealth -- but their marriage came to a grinding halt over their deeply held (and deeply opposing) political views.
Divorce in legal terms is mainly about the division of assets, and although it maybe be simple in theory, the reality of a high asset divorce with complex financial portfolios is anything but straightforward.
Sometimes, divorcing spouses play a type of financial shell game with their finances -- they claim ownership of certain funds and assets when it benefits them and then disavow that same ownership when it's inconvenient for their divorce.
Divorces are hard journeys for many people. For business owners, there is a dynamic that isn't present in other divorces. These individuals have to think about how the divorce will impact the business.
Every divorce has its unique challenges -- but for high-asset couples, the first challenge may be as basic as figuring out everything that's owned and what value to attribute to each holding. That's before you get to the part where you have to try to divide things up, all the while figuring out the income and tax consequences you face with each different maneuver.
Expenses can easily pile up for people in Florida seeking a divorce. In addition to legal fees, a couple that needs to split the assets within a 401(k) retirement plan must first obtain a qualified domestic relations order. After paying a lawyer to prepare the QDRO document, the firm managing the retirement account typically adds another $300 to $1,800 in charges to process the transaction.
Florida couples who are getting a divorce may focus largely on major issues, such as child support and custody, as well as major assets such as the home. This might cause other financial considerations that are just as important to fall by the wayside.
Depletion of assets happens when one person in a Florida divorce spends marital assets in an effort to keep the other spouse from being able to claim them as part of property division. It may be possible to seek a restraining order to stop this from happening. It prevents major financial changes to marital property. However, if it is not filed in time or at all, and asset depletion occurs, then people may need to used other methods.
According to the National Center for Family & Marriage Research, older couples are divorcing at a higher rate than their younger counterparts. While divorce is always a difficult situation, there are some unique considerations that individuals close to retirement may want to consider.