Phone: 301-738-7770
Steven J. Gaba, Attorney and Counselor at Law
Phone: 301-738-7770

The use of valuation experts within a high asset divorce

Every divorcing couple in Maryland will allocate a significant volume of time and attention on the division of marital wealth. This is an important aspect of any divorce, as the outcome will shape the financial future of both parties for many years to come. For couples that share significant levels of wealth, the process of reaching a settlement as to the division of those assets can be difficult. Fortunately, there are professionals who can assist in determining the true value of various assets, which is the first step in attaining a fair settlement.

Each couple has a unique blend of assets and will require a different type of valuation approach. In some cases, assets such as complex investment portfolios must be evaluated. This requires an expert who can sift through assets such as concentrated equity positions and pre-IPO stock. Such forms of wealth are influenced by potential losses associated with the transfer of ownership, sale or other forms of distribution.

Another example lies in life insurance, an asset that is often undervalued. In many cases, high asset spouses have amassed a significant level of wealth within their life insurance policies. In some cases, life insurance is held within one or more trusts, which adds another layer of complication. In such instances, spouses should make use of the services of a valuation expert trained in both trusts and life insurance.

Working through the intricacies of a high asset divorce can take a significant investment of time and effort. However, by carefully examining the value of each and every type of asset, Maryland spouses have a better chance of attaining a fair and favorable division of marital wealth. That outcome is one that can pave the way for years of future financial stability.

Source: Forbes, "Getting The Most From A High-Dollar Divorce", Russ Alan Prince, Dec. 1, 2014

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