We've been talking a lot lately about issues that are specific to high-asset divorces. These types of divorces can be extremely challenging because they have so many moving parts. Take, for example, a couple who have been married for 25 years. The husband has worked hard to build the family business with the continuous help of his wife. His wife has been the primary caretaker of their three kids, taken on secretarial duties for their company and maintained the home. Now, the two are headed for divorce.
This is not an atypical situation. Besides having their own business, they likely have life-insurance plans, stocks and a variety of assets. How does someone begin to understand the true value of these assets?
That is where representation comes into play. A lawyer will not only utilize his or her knowledge to help sort through the various assets, but may also bring in experts from different fields in order to uncover the true value of each asset.
As we had mentioned previously, a valuation expert may play a key role in figuring out the value of a family business, as well as a client's specific stake in that business. These types of experts often times carry specific designations and are affiliated with accounting firms. Similarly, a client may benefit from working with someone who has investment management experience. Things can get very complicated when assets such as concentrated equity positions or pre-IPO stocks are split. In our next post we will continue our discussion on the value of working with experts during divorce.