Divorce involving high net worth offshore accounts and assets can get complicated very quickly, especially when offshore accounts are part of the picture. Offshore accounts are simply bank accounts located outside your home country. They are legal, but they add extra layers of complexity to divorce cases. They are often harder to hide than domestic bank accounts, and splitting them up can be difficult.

That’s why it’s so important to work closely with a high net worth divorce attorney in West Virginia. Call Pence Law Firm at 304-345-7250 to set up a consultation with our team now.

Legal Concerns

Several legal issues can be caused by offshore accounts in a divorce. One major concern is making sure that all accounts are fully disclosed by both sides. Both parties need to be transparent about their financial holdings. Note that hiding accounts can lead to serious legal penalties and delay the divorce process; when these efforts are uncovered, they generally backfire.

Additionally, tax implications for these accounts must be addressed, as they can affect the overall financial settlement.

Finding Offshore Accounts

Finding offshore accounts during a divorce may seem impossible, but the fact is that every financial transaction leaves a trail. You just have to find it. A good place to start is by reviewing tax returns, which should report any interest or income from these accounts. Additionally, if you or your spouse are required to fire an FBAR—which you likely are if you have foreign accounts—those accounts should be listed on your most recent FBAR.

If you need more help, forensic accountants are experts in tracing financial activities, even those that individuals try to hide. They can follow the money trail and find hidden accounts. You can also use legal tools like subpoenas to demand financial documents from banks.

A strong knowledge of international treaties can be helpful, since these treaties require countries to share financial information with cooperating countries. Many countries have agreements with the United States that require them to disclose accounts owned by American nationals.

Dividing Offshore Assets

Once offshore accounts are identified, the next step is to split them up in a fair and equitable manner. This can be tricky, because the value of assets in these accounts can change due to currency exchange rates and fluctuating international market conditions. The goal is to ensure a fair split of marital assets, but different international laws and regulations can make this complicated. Legal experts who know both divorce and international finance can help make sure the division is fair.

International Laws and Regulations

Offshore accounts follow the laws of the country where they are located, along with laws governing international financial transactions. This adds more complexity to divorces, as each country has different regulations about reporting assets, paying taxes, and moving money.

Some countries might not honor foreign court orders to freeze or divide assets, making it hard to enforce divorce settlements, especially if your ex has intentionally placed assets in a country unlikely to honor an American court order.

Protecting Your Interests

In a high net worth divorce, especially one involving offshore accounts, protecting your financial interests must be one of your top priorities. The first step is making sure all financial information is transparent and accurately disclosed. Gather all your financial documents early, including bank statements and tax returns. If your ex plans on hiding assets or accounts, they will likely make these documents inaccessible as soon as divorce is on the table, so make copies as early as possible.

You should also be proactive about identifying any offshore accounts. Use available resources, like forensic accountants and tax documents, to trace and uncover these accounts. This will ensure all assets are considered in the division process. Be prepared for a lengthy wait, as this can take much more time than a divorce solely involving domestic assets.

Know that even if your ex is attempting to hide assets in offshore accounts, the truth often prevails in divorce cases. Family court judges have seen every trick an individual may use to get out of disclosing and dividing assets, so the chances of them seeing through your ex’s efforts are good, especially if you have an aggressive divorce attorney advocating for you every step of the way.

Let’s Get Started—Call Us Today

The team at Pence Law Firm is committed to helping you fight for what’s fair during a high-asset divorce. If you’re afraid that offshore accounts will muddy the divorce process and cause you to lose out on valuable assets, let’s discuss your options. Call us at 304-345-7250 or reach out online to set up a time to talk.