A high-asset divorce may require spouses to untangle business interests, executive compensation, real estate and retirement accounts all at once. In Denver-area divorces, the court may need to evaluate those assets and their financial consequences before determining how marital property should be divided under Colorado law.
Complex assets require more than a simple appraisal
Some assets are harder to divide because they change in value, depend on future events or mix personal and marital interests. Stock awards, deferred compensation, closely held businesses and investment property all present this challenge.
Colorado law distinguishes marital property from separate property and directs courts to consider factors such as contributions to marital property, each spouse’s economic circumstances and increases or decreases in separate-property value during the marriage. Tax rules for divorced or separated individuals can also become important when one proposed split creates future liability that the parties did not expect.
What property creates the biggest disputes?
High-asset divorce cases involve more than salary and savings. Some of the most disputed property may include:
- Business ownership interests
- Restricted stock or deferred compensation tied to future vesting
- Performance bonuses that do not repeat every year
- Real estate investments
- Retirement accounts and pensions
These assets may require expert appraisal, tracing and a close look at when the spouse earned or acquired them.
How tax treatment and timing can affect property division
An equal-looking split on paper may have different financial consequences if one spouse receives assets with substantially different tax bases or potential tax consequences upon a future sale. Divorce property disputes involving significant assets may turn on liquidity, transfer costs and the financial consequences of each proposed allocation. A family law attorney can review the value, liquidity, tax treatment and other financial characteristics of the assets and identify where a seemingly equal arrangement may place too much long-term risk on one spouse.