High-Net-Worth and Complex Divorce in Tennessee

The CDC reports Tennessee divorce rates are 2.9 per 1,000 people. It’s expected that a small percentage of these divorces are high-net-worth or complex situations.

High-net-worth divorces require a team of professionals to value and divide assets among the two parties accurately. These could include:

• Certified public accountants
• Legal representatives for both parties
• Financial experts
• Appraisers
• Forensic accountants

Divorce is difficult enough without added complexities. At Graham Law & Associates, we help our clients through the process with the goal of a fair, equitable division of assets. Continue reading to learn more about complex divorces in Tennessee, or contact us for a consultation.

Divorce considerations:

A complex divorce requires a strategy to assess and divide assets aligned with Tennessee law. In most divorces, an equitable division of assets is the goal. This is evaluated case-by-case and may not equal a 50/50 split. Several considerations are weighed, given the individual circumstances.

Courts in Tennessee assess financial and non-financial marital contributions when considering asset division. If you aren’t sure how to split your assets, we recommend you schedule a consultation with a divorce attorney. Graham Law & Associates is happy to speak to you about your situation and options.

Not ready to give us a call? Keep reading to learn more about specific divorce considerations.

Valuation of business interests and assets

Common, yet complex, situations in high-net-worth cases are businesses and related interests. When individuals own a business, there are many factors to evaluate to determine the valuation. To determine the value of a business, an extensive strategic financial analysis is required.

Of course, anyone with business knowledge knows that there are different accounting methods and ways to determine the value of a business. This is often a challenging aspect of the divorce case. Clients occasionally can arrive at different numbers, creating more tension in an already intense situation.

Divorce attorneys can provide invaluable assistance to clients in these situations. They offer insight, help with the discovery process, and can determine the correct method so everyone is on the same page.

Division of retirement plans

The most common retirement plans clients have during a divorce include:

• 401(k)s
• Pensions
• IRAs
• Other accounts

These types of accounts are often included when acquired during the marriage. Special situations and cases do occur. We encourage people facing divorce to speak to an attorney to understand their rights and options.

Trusts

Trust assets are another complex factor many high-net-worth individuals have when dealing with a divorce. Trust interests may require special analysis, as some trusts are not considered marital property under Tennessee law depending on their structure and use. There are several factors to analyze before including it, such as when it was established and the type of trust it is.

Real estate

Real estate acquired during the marriage or with both people’s names is often included in the divorce division. Common real estate assets include family homes, vacation homes, and investment properties. The more real estate a married couple has, the more complex the divorce can become.

Stock options and financial investments

High-net-worth individuals often hold stock portfolios, bonds, and other investments. These are often included in the divorce asset division process, except in certain cases. When included, these assets must be properly valued and divided among the spouses.

Tax implications of asset division

There are short- and long-term financial impacts with asset division. Effective tax planning is a crucial component of asset division in high-net-worth divorce cases. It would be unfair to leave one party with heavy tax implications for years to come, and your attorney can argue for a more fair breakdown. It’s important that legal representation for both parties work together to make the asset division a fair transaction.

Navigation of prenuptial agreements

Prenuptial agreements add an extra layer of complexity to high-net-worth divorces. These agreements are meant to protect assets and outline a clear division in the instance of divorce. However, prenuptial agreements may be challenged if they were not entered voluntarily, lacked fair disclosure, or were unconscionable at the time they were signed.

Alimony

Alimony can be another challenge in complex divorces. Depending on how assets are divided, alimony may or may not be an option for the spouse making less income. In Tennessee, judges award alimony amounts based on the unique case circumstances. There are several types of alimony awards available, based on specific case situations. A divorce attorney may help a client with presenting a case to receive alimony in some instances.

International assets

In some instances, a divorce may include foreign properties or accounts. When facing these situations, it’s important to have a knowledgeable person available to navigate domestic and international laws. This often includes working with lawyers in the specified country to ensure all legalities are correct.

Hidden assets

On rare occasions, an individual may try to hide assets during the divorce process. This could look like underreported income or failure to report an asset. An attorney can help clients in these instances to uncover the truth. At Graham Law & Associates, we strive to help our clients with a fair and equitable divorce.

How a divorce attorney in Tennessee may help

A high-net-worth divorce is often classified as one where the assets of at least one person are usually valued at more than $1 million (not a legal definition). These cases are more challenging due to the logistics involved with assets. Securing professional guidance from a divorce attorney benefits many clients.

Divorces are highly emotional and challenging times in people’s lives. A knowledgeable divorce attorney can help high-net-worth clients secure their financial future and protect assets. An attorney guides clients, offers legal advice, and supports their individual goals.

If you’re facing a complex divorce case, we encourage you to consider speaking to an attorney to see if they can help with your situation.

Contact Graham Law & Associates for a consultation today

High-net-worth and complex divorce cases in Tennessee don’t have to be as daunting as they seem. At Graham Law & Associates, we help our clients navigate this difficult time with ease and support. Our team is happy to schedule a consultation to discuss whether we can assist with your situation. Give us a call or fill out the contact form.