Wilmoth Law Blog
How Are High-Asset Divorces Handled in Arkansas?
High-asset divorces go through the same legal process as any other end of a marriage does. The usual process is that you attempt to negotiate a settlement agreement with your spouse that divides the assets between you. The settlement agreement may also cover alimony if it is warranted by the circumstances. If you are unable to reach a settlement agreement, or if there is a financial emergency in the meantime that requires it, your case could end up in court, where a judge would decide the disputed issues.
Arkansas Uses the Law of Equitable Distribution
Arkansas is an “equitable distribution” state under Arkansas Code § 9-12-315, meaning that the court uses principles of fairness to determine which spouse gets which percentage of the marital assets. If the case goes to a hearing, and a judge decides the distribution of the assets, they use the following factors:
- Length of the marriage
- Age, health, and station in life of each spouse
- Occupation of each spouse
- Amount and sources of income
- Vocational skills
- Employability
- Estate, liabilities, and financial needs of each party, including future earning opportunities
- Each spouse’s contribution to acquisition, preservation, or appreciation of marital property, including homemaking and childcare contributions
- Federal income tax consequences of the property division
There is a presumption that the property would be divided equally, but a judge may depart from this at their discretion and based on an application of these factors.
What Makes a High-Asset Divorce so Complex?
“High-asset divorces” involve significantly greater complexity than standard divorces due to the volume, variety, and value of the assets at stake. The financial and legal implications demand a higher level of expertise and careful strategy. Here are the key reasons why high-asset divorces may require additional effort and time:
- Complex Asset Division: Businesses, investments, real estate portfolios, retirement accounts, and offshore holdings must all be accurately identified and valued.
- Hidden Assets: Wealthy spouses may attempt to conceal income or undervalue assets, requiring forensic accountants to investigate.
- Tax Implications: Dividing high-value assets can trigger significant tax consequences that must be carefully managed.
- Prenuptial Agreements: These documents require thorough legal scrutiny to determine enforceability.
- Lifestyle Considerations: Spousal support calculations become far more complicated at higher income levels.
If there are complex assets, it may require additional work to both value them and negotiate their division. For example, if the spouses owned, each may need a forensic accountant to come up with their own valuation. In other cases, forensic accountants may be needed to determine which property is marital in nature, subject to division, and which property is separate. There may be disputes about both valuation and whether property should be divided equitably.
How Property Division Is Handled in a High-Asset Divorce
Even though high-asset divorces have a greater chance of ending up in front of a judge at a hearing, they are still better resolved through negotiation and compromise. It may take more time and effort to reach a settlement agreement, but it is usually in your best interests to settle your divorce, as opposed to litigating it. However, there may be times when you have no choice but to litigate because it takes two to compromise. You may have to go to court to protect your own interests when your spouse is taking an unreasonable position, or there is concern that they could be hiding assets.
When you are dealing with a high-asset divorce, you must get legal help early. You will need to come up with a strategy that can help you obtain your desired outcome. You should never try to handle a high-asset divorce on your own because it could lead to leaving a significant amount of money on the table.
A Knowledgeable Washington County Divorce Lawyer at Wilmoth Law Firm Can Guide You Through the Divorce Process
Do you have questions about the divorce process? A Washington County divorce lawyer at Wilmoth Law Firm can provide you with strategic legal counsel if you are considering filing for a divorce. To schedule a free consultation, contact us online or call today at 479-443-8080. Located in Fayetteville, Arkansas, we gladly serve clients in the surrounding areas.