Resolving Valuation Issues in a High-Net-Worth Divorce

Since Arizona is a community property state, divorce means splitting up virtually all assets acquired during the marriage, which in turn requires determining their value. This process becomes more difficult for high-net-worth couples — those with total liquid assets greater than $1 million.

Couples going through a high-net-worth divorce often have accumulated assets that are not easy to value. Art, multiple properties and business ownership interests all require a specialized approach to valuation and may be subject to disagreement. In order to divide these assets in a way that satisfies both parties, it is often necessary to take special measures in resolving valuation issues for certain types of property, such as these:

• Real estate — When there are multiple properties or high-value properties at issue, it may be necessary to hire an expert appraiser to determine their worth. It is common for each spouse to retain their own experts, which means there must be a reckoning between the two.
• Art, jewelry and luxury goods — These items are often so unique that they require experts in order to accurately assess their value. Depending on the collectible items in a couple’s possession, multiple appraisers and experts may be necessary to arrive at acceptable valuations.
• Executive compensation —One or both of the spouses may be receiving earnings that go beyond traditional salary and bonuses, such as stock options, restricted transfers and sales of limited partnership interests. A close analysis of any employment agreements is usually necessary to fully value these complex forms of deferred compensation.
• Business interests — If either or both spouses hold an interest in an individual or family business, it constitutes a marital asset that must be divided as part of a divorce. Valuing a business can be very complex, particularly because closely held companies do not have a readily ascertainable market value.

If you are involved a high-net-worth divorce, it is important to get a full and accurate valuation of all of your assets so that you and your spouse can consider how you might amicably split your property and valuables. An Arizona divorce attorney can help provide expert appraisers, handle the logistics of appraisal and make sure that the division of your property is fair and equitable.

At Clark & Schloss Family Law, P.C. in Scottsdale, we have wide experience representing spouses in high-net-worth divorces. We can provide guidance on how best to value certain types of property and experienced experts to hire. Please call our office at 602-789-3497 or contact us online to arrange a consultation.