Fairly dividing assets and property can be one of the more emotionally and logistically challenging aspects of divorce. But the process becomes even more cumbersome when you and your spouse share significant, complex, high-value assets. 

Navigating a high assets divorce involves careful planning and the assistance of an experienced divorce attorney. 

Types of Assets To Consider in Your Divorce

When the average couple divorces, they may need to consider how they will split the family home, bank accounts, and shared vehicles. However, dividing assets in a high assets divorce adds another layer of complexity. You and your spouse may also need to divide any of the following:

• Stocks and stock options
• Complex investment portfolios
• Vacation homes
• Income properties
• Delayed compensation, such as 401(k) plans, pension plans, stock plans, restricted stock units (RSUs)
• Businesses

One of the first steps in the asset distribution process involves creating an inventory of all assets, both separate and marital. For items without clear value, such as artwork or jewelry, seek asset valuation to determine their worth. 

Understanding Pennsylvania’s Equitable Distribution Policy 

Pennsylvania, along with 41 other states, follows an equitable distribution policy for divorce. Rather than splitting assets exactly down the middle, the court attempts to divide marital assets in a method that would be reasonably fair. Many factors may impact how the court decides to divide your property, such as:

• The length of the marriage
• The age and overall health of both spouses
• Any prenuptial agreements
• Previous marriages
• Child custody arrangements
• The amount of marital and non-marital assets
• The amount of debts 

Pennsylvania’s Marital Property Classification 

In Pennsylvania, all property acquired by either spouse during the marriage is considered marital property and subject to equitable distribution. Marital property also includes any increase in the value of non-marital property. 

Non-marital property includes assets acquired before the marriage and property excluded through a valid agreement of both parties. 

Avoiding Pitfalls in a High Assets Divorce

Be aware of a few potential pitfalls within your high assets divorce. 

First, you may face tax implications if you do not split assets according to equitable distribution procedures. These might include:

• Capital gains taxes
• Gift taxes
• Penalties from early retirement account withdrawals

Financial professional involvement is key to reducing your tax burden when transferring assets. This is especially important for high-net-worth divorces involving complex assets and problems like business ownership division. 

Additionally, be wary of your spouse potentially hiding money or assets during the divorce process. Assets can easily become lost or overlooked in high-net-worth divorces. Do your due diligence to thoroughly inventory all property, accounts, and other assets, and alert your attorney if you think your spouse is hiding assets. 

Consult Karen Ann Ulmer, P.C., for High Assets Divorce

If you need help effectively navigating a high assets divorce in Pennsylvania, Karen Ann Ulmer, P.C., is here for you. Our compassionate, knowledgeable attorneys have helped countless high-net-worth clients protect their assets and avoid financial complications during divorce. 

Contact us today at (866) 311-6082 to schedule a confidential consultation.