Photo of Kenneth L. Gibson Jr.
Photo of Kenneth L. Gibson Jr.
Photo of Kenneth L. Gibson Jr.

Considerations when mixed-income couples divorce

On Behalf of | Dec 12, 2023 | blog, divorce | 0 comments

Divorce can be a complex process. When a high-asset individual separates from a spouse with limited income, several unique considerations come into play.

Understanding the critical factors guides an equitable resolution for both parties.

Asset valuation

Accurately valuing assets becomes critical in divorces involving significant wealth. High-asset individuals may own properties, investments and businesses that require professional assessment to determine their true value.

Transparency about the appraisal of these assets supports fair property division.

Spousal support considerations

When one spouse has limited income, the court may award spousal support. The financial disparity between spouses is a key factor in the amount and duration of alimony.

The court may require high-asset individuals to provide financial assistance to their ex-spouse for a specified period.

Tax implications

Divorce often comes with tax consequences, especially for high-asset individuals. Capital gains, property transfers and changes in income can impact the tax liability of both parties. Planning for potential tax liabilities can help you make informed choices.

Lifestyle maintenance

The court strives to allow both parties to maintain the lifestyle they had during the marriage. Standard of living may be a significant factor in high-asset divorce, especially when it comes to spousal support for someone with limited income.

Kentucky has about 3.3 divorces per 1,000 residents each year, more than all but seven other U.S. states. Divorcing a spouse who limited income when you have substantial assets requires careful negotiation. Open, honest communication about the needs of both parties can help you achieve fair property division.

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Photo of Kenneth L. Gibson Jr.