The Importance of Accurate Asset Valuations During High-Net-Worth Divorce in Atlanta

High-net-worth spouses tend to acquire many complex assets. By definition, complex assets are difficult to value accurately. This can be challenging for spouses in Atlanta as they approach the property division process. If these valuations are even slightly off, spouses could lose considerable sums during equitable distribution. Learn more about this process by contacting an experienced high-net-worth divorce lawyer in Atlanta.

Complex Assets Are Common in High-Net-Worth Divorces

Complex assets can be difficult to value. During the property division in a high-net-worth divorce, spouses might have to contend with various complex assets. These might include family businesses, retirement accounts, stock options, real estate, collectibles, fine art, trust assets, intellectual property, jewelry, precious metals, and much more. For truly high-net-worth families, these assets can be worth millions of dollars.

Spouses Often Attempt to Conceal Wealth Using Complex Assets

Shrewd spouses might attempt to use complex, difficult-to-value assets to conceal wealth during divorce. For example, a spouse might have a very niche collection of Pokémon cards. This collection might be worth millions of dollars, but the other spouse might have no clue about the asset’s true value. The spouse who owns this collection might try to downplay its value in an attempt to walk away with a substantially higher share of the marital property. Years after the divorce becomes final, the spouse might “cash in” and sell the collection.

This same logic applies to many other types of collectibles, fine art, and other properties that are easy to conceal and difficult to appraise. Some spouses may attempt these strategies while the divorce is already underway, potentially diverting large sums of marital property toward seemingly worthless items.

Situations like these underline the importance of accurate appraisals during high-net-worth divorce. Even if your spouse insists that a Pokémon or baseball card is worthless, you might want to have the item professionally appraised to ascertain its true value.

Business Valuations Can Be Especially Complex

Most high-net-worth and ultra-high-net-worth individuals are entrepreneurs. These individuals might have significant shares in family businesses, and these businesses may be worth millions of dollars. Other high-net-worth individuals may hold partnership shares in a highly successful business, such as a law firm or accounting firm.

The specific value of a business depends on various factors, including the valuation methods chosen by the parties. A spouse who wants to downplay the true value of a business might choose a valuation method that helps them achieve this goal. A spouse who wants to exaggerate the value of a business might prefer a different method. Spouses often disagree on specific valuation methods for obvious reasons, and the “truth” generally lies somewhere in between two extremes.

Can an Atlanta High-Net-Worth Divorce Lawyer Help Me?

A high-net-worth divorce lawyer in Atlanta may be able to help you ensure accurate valuations during property division. Whether you’re dividing family businesses, collectibles, fine art, stock options, or any other property, legal guidance can ensure you walk away with your fair share. Contact Buckhead Family Law today for more information.

Sources: 

investopedia.com/terms/b/business-valuation.asp

polygon.com/gamestop-pokemon-tcg-card-price-increase-upc-etb-pack-sales/