The legal and financial aspects of marriage are often overlooked in our romantic conception of relationships. However, finances are an important part of any marriage – and perhaps even more important in a divorce. One particularly difficult aspect of determining how marital property is divided in a divorce is the valuation and division of complex assets, especially when those assets and the individuals who own them have a high net worth.
What is a Complex Asset?
Complex assets include assets made up of multiple components, each of which may contribute to the asset’s value. For example, an investment portfolio that has funds in securities, bonds, and small-cap stocks can change in value from day to day and would be considered a complex asset. By contrast, cash in a savings account, a car, or any other asset which may be quickly sold for an easily estimated amount of money would not be considered a complex asset.
Small businesses are one of the most common types of complex assets handled in a divorce. Even if a business owner started or acquired a business before getting married, that business may still be considered marital property. If the spouse contributed money or time to the business, he or she may be entitled to an equitable share of the company in the divorce. Spouses may be able to reach an agreement about the division of assets through negotiations or an alternative resolution method like collaborative law. If spouses cannot reach a settlement, the court may determine the division of assets.
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