Parkersburg, WV High Asset Divorce Attorneys

Even in the smoothest of cases, divorce is a difficult process—and that’s when both parties agree to the terms of the divorce and harbor minimal animosity towards each other. When you look at divorces involving couples with substantial assets, it’s rarely the best-case scenario. No one wants to experience a significant downgrade in their quality of life as a result of their divorce, so high-asset divorces are often drawn out, complex, and painful for everyone involved.

If you’re involved in a high-asset divorce, you need a Parkersburg divorce attorney with experience handling these types of cases. The right attorney will understand the nuances of asset division when there are lots of assets at stake, alimony or spousal support, and the best interests of the couple’s children.

That’s where we can help. The team at Pence Law Firm PLLC has helped many individuals navigate their complex high-net-worth divorces. To find out how we can help you—call us at 304-407-7852 to get started.

Division of Debts and Assets

When a couple has amassed substantial assets during their time together, the division of assets is often one of the most difficult and time-consuming aspects of their divorce.

Understanding Equitable Distribution

Like many other states, West Virginia operates under the principle of equitable distribution. This means it isn’t guaranteed that each spouse is entitled to half of the marital estate. Instead, the court divides assets in a way that is considered fair.

This distinction between “equal” and “equitable” is central to the entire process. While a 50/50 split is often the default starting point, either party is entitled to present evidence demonstrating why a different proportion would be more just given the circumstances of the marriage. The entire exercise is designed to prevent one party from being unfairly disadvantaged upon the dissolution of the marital partnership.

To achieve this goal, the court uses a number of factors, including but not limited to:

• Each party’s health
• Each party’s financial and non-financial contributions to the marriage, including contributions as a homemaker
• Sacrifices made by either spouse, such as foregoing a career to raise children
• Each party’s ability to earn a living in the future
• Other separate assets owned by either spouse

The Time Commitment

Plan on spending a considerable amount of time on the division of assets. A couple that marries, never attains any valuable assets, and divorces has nothing to lose or gain when leaving the marriage, so it’s easy to just go your own way. But when there are significant assets at stake, you can expect both parties to vigorously protect their economic position.

Some of the specific issues that may arise include:

Detailed Asset Identification and Valuation

The more diverse your assets are, the more challenging it may be to account for all of them and get a fair valuation. This process really can’t be rushed; doing so could mean leaving a substantial amount of money or value on the table.

In high net-worth cases, this task often involves detailed forensic accounting to trace funds and expenditures. Assets to consider include real estate, retirement accounts, business shares, rental properties, investments, cash on hand, expensive items, and digital assets.

Furthermore, retirement accounts, such as 401(k)s and pensions, require specific legal documentation—known as a Qualified Domestic Relations Order (QDRO)—to divide the funds without incurring early withdrawal penalties or immediate taxation. The correct preparation of this order is a crucial administrative step that cannot be overlooked.

Separate Property vs. Marital Property

In West Virginia, separate property is not divided in a divorce. Separate property generally includes anything owned before the marriage, or received during the marriage as a gift or inheritance.

If either party possesses a large amount of separate property, you may see considerable efforts from the other party to have it classified as marital property.

This usually happens if separate funds have been “commingled” or mixed with marital funds. For instance, if an inheritance (separate property) was deposited into a joint bank account and used to pay joint marital bills, the separate nature of those funds may have been compromised. If you do have separate property, plan on utilizing detailed financial documentation to prove that you have, in fact, maintained its separate character throughout the course of your marriage—a process sometimes called “tracing.”

Valuing Complex Business Holdings

Many high-asset marriages involve ownership of at least one business. These disputes can become complex, especially if both parties want to maintain ownership or if the business is the primary source of income.

Additionally, there may be disputes over the actual present-day value of the business and the extent of the contributions (both financial and non-financial) put in by both parties.

Determining the true worth of a privately held company often requires the assistance of a business valuation professional. They may use various methods, such as the market approach, the income approach, or the asset approach, to arrive at a fair monetary figure.

Handling Non-Conventional Assets

High-net-worth couples are more likely to have assets that fall outside of conventional categories, which are often far harder to split up than typical bank accounts or investment portfolios. Antiques, extensive art collections, niche collectible items, intellectual property like patents or copyrights, and digital currency such as Bitcoin all must be fairly divided.

These types of assets generally require a specific valuation professional, which adds both time and cost to the proceedings. For digital assets, determining ownership and accessing secure wallets presents novel challenges that require particular attention.

The Critical Role of Tax Planning

Splitting up certain assets can lead to tax consequences for one or both parties, potentially turning an ostensibly equal division into an unequal one after the IRS is factored in. For example, transferring a stock portfolio might not trigger an immediate tax event, but selling a property might lead to capital gains tax liability for the recipient spouse.

Depreciation recapture on business or rental property assets can also be a significant issue. Before agreeing to anything, it is highly advisable to discuss the tax implications of any proposed agreement with your attorney and a certified public accountant (CPA).

Alimony in High-Asset Divorces

Spousal support (or alimony) is often a point of contention in high-asset divorces. It is more likely to be awarded in these cases than in other types of divorces, as it’s more common for one party to have earned a significantly high income while the other may have earned less or put their career aside to manage the household or raise children.

The central concept here is often the maintenance of the marital standard of living. The court seeks to ensure that the recipient spouse can maintain a lifestyle reasonably similar to the one enjoyed during the marriage.

Spousal Support Determination

A number of factors go into whether or not spousal support is awarded and, if so, how much is awarded. Relevant factors include:

• Standard of living and lifestyle expenses during the marriage
• Both parties’ income sources and earning history
• The present ability of both parties to earn a living, including the assessment of imputed income if one party is voluntarily underemployed
• The length of the marriage, with longer marriages generally favoring a spousal support award
• Sacrifices made by both parties, particularly those that hindered one spouse’s career progression

Forms of Alimony in West Virginia

Alimony takes several forms in West Virginia:

• Temporary Spousal Support: This type is awarded while a divorce is in progress to ensure the financially dependent spouse can meet their needs until the final settlement is reached.
• Permanent Spousal Support: This is awarded only in limited circumstances, generally when one spouse is permanently unable to support themselves due to debilitating illness or advanced age. It also typically requires a long-term marriage.
• Spousal Support in Gross: This is a fixed total amount that is paid out either in a lump sum or in periodic installments. This form is often favored in high-asset cases because it creates a clean financial break between the parties and is sometimes preferred for estate planning reasons.

Navigating the Complex Financial Landscape

Due to the intricate financial entanglements characteristic of high-net-worth marriages, obtaining appropriate legal and financial guidance is paramount. The documents involved—from complex trust agreements to limited partnership filings and intricate investment schedules—require careful review.

The Need for Comprehensive Guidance

Attorneys concentrating on the detailed administration of marital dissolution understand how to navigate these financial documents and structure settlements in a way that safeguards their client’s economic future. They often coordinate a comprehensive team, which may include valuation professionals, pension analysts, and forensic accountants, to ensure every asset is identified and valued accurately. This collaborative approach allows the legal practice to focus on the law while other professionals focus on providing the necessary financial quantification.

Alternative Dispute Resolution

Furthermore, many couples opt for alternative dispute resolution methods, such as mediation or collaborative law, even in complex financial situations. While the asset pool is large, successfully resolving issues outside of a courtroom can dramatically reduce the time involved and maintain a greater degree of control and privacy over proprietary financial information, especially concerning business interests. When large amounts of capital are at stake, the legal guidance sought should reflect a strong commitment to due diligence and thorough financial resolution.

Determining Child Custody and Support

This is always an emotional topic in divorce. Decisions are made with the best interests of the child in mind, but high-asset divorces present some additional challenges. For example, if one parent works a lot to maintain their lifestyle, it may be better for the child to remain with the parent that has served as their primary caregiver.

High-asset families often put their children in private schools and expensive extracurriculars, expenses that must be accounted for in child support. Additionally, child support in high-net-worth divorces may not follow a fixed formula, due to the unusual financial circumstances.

Divorce Lawyers Parkersburg WV

Divorce, no matter the circumstances, is a path marked by emotional and logistical challenges. When a marriage involves a significant accumulation of assets, property, and wealth, the process can become far more intricate. 

High-asset divorces introduce a layer of complexity that goes beyond standard asset division, touching on areas like business valuation, diverse investment portfolios, and complex financial structures. 

For individuals facing such a situation in Parkersburg, West Virginia, it is crucial to have a clear understanding of the unique factors at play. Our firm, Pence Law Firm PLLC, is dedicated to helping people in these very circumstances. We understand the concerns you may have about preserving your financial future and ensuring a stable foundation for the next chapter of your life.

Defining a High-Asset Divorce

A high-asset divorce is not simply determined by a specific dollar amount. Instead, it is characterized by the nature and variety of the assets involved. This can include business ownership, extensive real estate holdings, a variety of investment accounts, and substantial retirement funds. 

These assets often have complicated valuations and may be tied up in trusts or other legal arrangements. The sheer volume and complexity of these financial matters require a methodical approach to ensure every detail is accounted for. For many, the financial legacy built over the years is at stake, making it essential to address these matters carefully. The goal is to reach a resolution that is fair and reflects the contributions of both parties to the marriage.

The Division of Marital Assets

In West Virginia, the law requires an equitable division of marital property. This does not always mean a 50/50 split. Instead, the court aims for a fair outcome based on various factors. When dealing with substantial assets, this process is far from straightforward. Each category of asset brings its own set of challenges and considerations that must be addressed with careful attention.

Business Valuations

For couples who own a business, this asset is often one of the most significant and difficult to divide. A business is not just its bank account; its value is tied to its future earning potential, its assets, and its brand. Valuing a business can be a complex undertaking that may require a forensic accountant or a certified business valuator. It is essential to determine the true worth of the business to ensure a just division. Without a proper valuation, a key source of family wealth could be unfairly allocated, impacting one or both parties for years to come.

Real Estate and Properties

Many high-net-worth couples have multiple properties, including the marital home, vacation homes, and investment properties. Each piece of real estate requires its own valuation, which can be affected by market trends and specific property features. The decision of whether to sell a property or for one spouse to buy out the other can have significant tax implications. A detailed review of each property’s title and mortgage history is necessary to confirm its status as marital or separate property.

Investment Portfolios and Retirement Accounts

Substantial wealth is often held in investment accounts, stocks, bonds, and various retirement funds like 401(k)s, IRAs, and pensions. These accounts can fluctuate in value and may have different tax consequences upon division. A professional who has a strong background in these financial instruments can help trace the origins of these funds and work to divide them without incurring unnecessary penalties. The method of division, whether by liquidating assets or transferring funds, must be chosen with a full understanding of the long-term financial impact.

Trusts and Family Wealth

In some cases, family wealth may be held in trusts or other arrangements. The distinction between marital property and separate property becomes particularly important here. Property or assets received by one spouse as a gift or inheritance are typically considered separate property and are not subject to division. However, if these assets were commingled with marital assets or if marital funds were used to improve them, their classification can become a point of contention. A thorough examination of the financial history of these assets is necessary to determine their legal status.

The Importance of a Focused Legal Team

Successfully navigating a high-asset divorce requires careful planning, a deep understanding of financial details, and a clear vision for the future. The team at Pence Law Firm PLLC has a history of guiding individuals through the intricacies of these cases. 

We are focused on a thorough investigation of all financial information to ensure nothing is overlooked. Our aim is to provide a comprehensive and effective approach to the division of assets, alimony, and child-related matters. We are committed to protecting your financial interests and helping you move forward with confidence. We understand the nuances of asset division and will work diligently to seek an outcome that secures your financial future.

Get Started Today

A high-asset divorce can be overwhelming, but you do not have to face it alone. Having a dedicated legal team in your corner can make all the difference in the outcome. The professionals at Pence Law Firm PLLC are ready to help you navigate this process. To learn how we can assist you, contact us at 304-407-7852.

How Pence Law Firm Can Help

At Pence Law Firm, we realize that divorce may be one of the most challenging things you ever go through. No matter how hard it is, though, you have to prepare for life after divorce. That means advocating for yourself every step of the way, so you have what you need for a fresh start.

You may not always be in an emotional position to advocate for yourself—that’s where we step in. While you focus on adjusting to this next stage of life, we’ll find out what you want from your divorce and handle communication with your ex-spouse’s attorney. This limits confrontation with your ex-spouse and gives you space to heal.

Contact Us Today to Discuss Your Legal Needs

You don’t have to go through a divorce alone. Find out how Pence Law Firm can support you as you move forward. Set up a consultation with our Parkersburg high-asset divorce lawyers now by calling us at 304-407-7852 or sending us a message online.