When it comes to high-asset marital property planning, there is much to consider beyond simply dividing up assets.
Couples with substantial wealth must take special care in developing a plan that will protect their assets and ensure their financial security. Here are some key considerations for high-asset marital property planning.
Protecting assets through prenuptial agreements
A prenuptial agreement is a powerful tool for high-asset couples to protect their assets in the event of divorce. Such an agreement can specify how the couple will divide property, establish terms for spousal support and protect inheritances and family businesses. While historically, many people have associated prenuptial agreements with negative stigmas, they have become increasingly popular among high-asset couples. In fact, the number of people seeking prenuptial agreements has steadily increased in recent years.
Navigating complex asset division
High-asset couples may have a range of assets to divide, including property, investments and business interests. Such assets can be complex and difficult to value, and there may be tax implications to consider as well. It is important for couples to work with experienced professionals such as appraisers, accountants and financial advisors to ensure that assets are accurately valued and that they understand all tax consequences.
Protecting inheritances and family businesses
Many high-asset couples have significant inheritances or family businesses that they want to protect in the event of divorce. Setting up a trust for a family business can help ensure that it remains in the family in the event of divorce. Additionally, couples may choose to keep such assets separate from marital property, either by using a prenuptial agreement or by keeping them in separate accounts.
High-asset marital property planning requires careful consideration of a range of factors. Couples should work with experienced professionals to ensure that their plan is thorough and effective.