Arriving at the decision to divorce is never easy, and neither is the divorce process. Both are fraught with emotion, contention, and often legal disputes over child custody, spousal support, and the division of assets. Colorado is an “equitable division of property” state, requiring divorcing spouses to divide their marital assets and debts in a way that’s fair to both spouses if not exactly 50/50. The process of asset division can become challenging and contentious even for spouses who own few assets like a home, two cars, a bank account, and a retirement plan, but for spouses with a combined high net worth, it’s especially complex and often a lengthy, meticulous process fraught with disputes.
When spouses own $1 million or more in assets and have diverse financial portfolios, multiple properties, and/or businesses and intellectual property, a divorce becomes a high net-worth divorce. With more assets to divide and a higher overall net worth, there’s more for each spouse to lose. This very often results in a more contentious process as well as the need for extensive property valuation and investigation by financial forensics experts to ensure that each spouse retains their separate property and fairly divides their marital property and assets.
During the divorce process, both spouses must submit full financial disclosures. Each spouse’s attorney may request additional financial documents from the other during the discovery period. A divorcing couple’s assets are divided into their separate and marital assets. Spouses may retain their separate assets but must fairly divide their marital assets. In high net-worth divorces, this becomes a painstaking process due to the co-mingling of assets that commonly occurs during marriage.
Separate assets in high net-worth divorces often include some or all of the following:
Marital assets are those the spouses accumulated during the marriage and could include any of the following:
In high net-worth divorces, commingling commonly occurs, giving one spouse the right to claim portions of some of the other spouse’s separate assets. For example, if they invest time, money, or talent into improving one or more of the other spouse’s assets, they are entitled to a share of the increased value of those assets. Granting a spouse access to a bank or investment account also makes it comingled or joint property. This is why high net-worth divorces are challenging to navigate and require diligent attention to detail.
All child custody decisions are made in the best interests of children regardless of their parents’ net worth. The Colorado court upholds that continued close contact with both parents is what is in the best interests of children unless a parent provides compelling evidence to the contrary. A high net-worth divorce sometimes impacts child support, since a judge may amend the results of the Income Shares formula for calculating child support if it indicates a monthly payment that is far in excess of what the children require to prevent a disruption to their accustomed standard of living. Having a high net worth may also impact spousal support decisions, depending on the unique circumstances of each case.
Call the Denver divorce attorneys at Ciancio Ciancio Brown, P.C. today if you’re ready to file a divorce petition or if you’ve received divorce papers from your spouse. We have experience, deep familiarity with Colorado’s divorce laws, and access to the best financial and valuation experts to protect your rights and assertively protect your best interests throughout your high net-worth divorce.
