How Utah Courts Divide Business Assets in High-Asset Divorces

What Is Equitable Distribution and How Does It Work in a High Asset Divorce?

In Utah, the court primarily decides the division of assets in a divorce. The court will always attempt to divide assets in a fair and equitable manner. The courts consider various factors such as the length of the marriage, income, earning potential of each spouse, and overall contributions made by each spouse to their marriage.

So, when dividing assets in a divorce, Utah follows its equitable distribution laws. “Equitable distribution” is a rather vague legal term, and its meaning is often misconstrued.

However, equitable distribution means that your marital assets (including business interests, property, etc.) and liabilities are divided fairly between you and your spouse.

You must note, however, that a fair distribution of assets does not always mean equality. But, overall, fairness depends on various factors unique to each couple’s situation.

The most common misconception about equitable distribution is that it always results in an equal split of marital assets. In Utah, when marital property and assets are divided, it rarely means that you and your spouse get precisely half of the overall assets.

In most Utah divorces, the longer you are married, the more likely your assets will be divided 50/50. However, the final decision is totally up to the court’s discretion.

The factors that decide the asset split are unique to each situation, and the court will review many factors, such as each spouse’s finances and earning capacity.

Additionally, in most cases, contributions made by each spouse during their marriage are another key consideration. Financial and non-financial contributions, including homemaking, child-rearing responsibilities, and more, are considered.

That said, negotiation is an integral part of determining the final split of assets, especially in a high-asset divorce where much is at stake; this is why obtaining an experienced, empathetic, and knowledgeable lawyer with expert negotiating skills is critical.

Why Is a Complete Inventory and Classification Important in a High Asset Divorce?

A high-asset divorce can be highly complex, as the court may have to consider multiple assets, property, vehicles, businesses, and more. Therefore, making a detailed and comprehensive property inventory and business interests can be a huge endeavor. Due to the family’s wealth, the spouses are likely to own varying properties, business interests, and other items (such as art, collectibles, etc.) that most families do not possess.

It is also vitally important to determine whether either spouse has attempted to hide or destroy assets and holdings or to keep them out of their divorce equation. This, at times, is a significant concern that you must discuss in detail with your knowledgeable divorce lawyer. Your lawyer will know the proper steps that must be taken, such as extensive discovery or the use of a forensic accountant.

Also, each spouse may own separate property; in most cases, this property will remain with them after the divorce. However, all marital property is subject to equitable division.

Once all the assets, property, business holdings, etc., are identified, they will be classified as separate or marital property.

Some examples of separately held property are:

• Any property owned by one spouse before they were married.
• Assets and holdings inherited by one spouse.
• Assets are received directly from a third party as a gift by either spouse.

It’s clear this process is critical to dealing with assets in a high-asset divorce, but it’s also complex. Your skilled, detail-oriented, and thorough divorce law team will know precisely how to effectively deal with this process and ensure no assets are hidden or omitted.

How Can I Keep My Assets Safe in My High Asset Divorce?

Helping to keep your privately held assets safe during a high-asset divorce does not just concern equitable distribution. You and your well-versed divorce lawyer must draft effective strategies for any privately held assets during your divorce proceedings and in the future. 

Below are just a few examples of how you can legally protect your assets;

• Using prenuptial and postnuptial Agreements – These legal documents can protect your assets. By using a professionally and well-drafted prenuptial or postnuptial agreement, you can specifically detail the distribution of assets if you were to divorce.
• Establishing a properly designed trust – Establishing a trust can be highly effective in safeguarding specific assets. These trusts can safeguard family heritages, business holdings, and other assets by legally separating them from marital holdings.
• Using separate property agreements – Your lawyer can draft documents that legally separate any property acquired before marriage.

Other strategies can be used to protect specific finances, such as;

• Keep separate bank accounts – Using separate accounts clearly shows that they are to be considered separate property.
• A thorough understanding of state and federal tax laws – This is vital to asset protection and may directly affect the actual value of the assets you retain.

A high-asset divorce can differ enormously from a more uncomplicated divorce. That said, you must have a divorce law team that understands the financial intricacies of these divorces, is familiar with the issues commonly involved, and has the resources to do the necessary in-depth analysis.

Why Is an Experienced High Asset Lawyer Critical in My Divorce?

High-asset divorces differ in complexity, negotiations, discovery, etc., than most divorce proceedings. Accordingly, your high-asset divorce lawyer must be well-versed and deeply experienced in these cases and be familiar with fully analyzing all the facts and data and drafting a sound strategy that protects your rights and assets.

Just a few of the things your lawyer will do are:

• Perform a highly detailed assessment of your finances, etc. – Your attorney will analyze all your assets, considering the financial goals you’re attempting to attain.
• They will work diligently to plan a sound legal strategy – Based on the analysis and assessment, a plan will be drafted and tailored to your circumstances and presented professionally to the Utah courts.
• Deal with all necessary negotiations – Issues will arise, and your law team will use their well-honed negotiation skills to minimize conflict and your expenses.
• Litigate if necessary  – If necessary, your experienced high-asset divorce lawyer will diligently prepare to vigorously promote and defend your interests in court, always striving to ensure a fair resolution to any conflicts.

I’m Divorcing and Hold Considerable Business and Other Assets; How Should I Proceed?

Divorce is always an emotional and painful experience, and in a high-asset divorce, property and asset division is usually legally tricky and overwhelming. This is why you should never attempt this legal challenge alone. Having an experienced, knowledgeable, and compassionate divorce lawyer by your side will help you navigate this treacherous legal path and start a new chapter in your life.

The high-asset divorce lawyers at the RCG Law Group will empathetically and professionally listen to your concerns and goals and propose realistic expectations about your case. Much is involved in a high-asset divorce, and your rights and financial future must be protected.

Call them today at 385-503-3663 to schedule a full consultation on your case. They will professionally, diligently, and compassionately give you the individualized attention your case deserves. Your financial future is on the line, and they have the professional resources needed to help you achieve a positive outcome and a solid financial future.