Couples with a high net worth often have diverse assets spread across various countries, adding layers of legal, financial, and logistical considerations to their divorce proceedings. Divorces involving foreign assets or offshore accounts tend to be more complicated than average. Addressing the potential legal challenges early in the process may help you achieve a smoother, faster resolution.
Keep reading to learn more about some of the challenges those with offshore accounts and property holdings may face when divorcing.
Jurisdictional Issues
One of the primary challenges in divorces involving international assets is determining the correct jurisdiction for the proceedings. Jurisdiction can significantly affect how divorce laws are applied, influencing asset division and other critical aspects of the settlement. One country's laws might differ vastly from those in another, complicating decisions on which legal system should preside.
Determining applicable laws involves understanding which jurisdiction can hear the case and make binding decisions. This can be particularly complex for couples with properties, businesses, or financial interests in multiple countries.
Examples of international assets many couples with high net worth own include:
- Luxury real estate in multiple countries
- Offshore bank accounts and investment portfolios
- International business ventures and holdings
Residency Requirements for Divorcing in Nevada
In order for a couple to petition for divorce in Nevada, both parties must meet specific residency requirements. At least one spouse must reside in Nevada for a minimum of six weeks immediately preceding the divorce petition. If these residency requirements are met and the couple files for divorce in Nevada, their property division will be subject to Nevada's laws.
Nevada follows the principle of community property in property division, which means that marital property is owned jointly and must be divided equally. While couples are encouraged to negotiate their own property division settlements, Nevada's property laws can significantly impact the outcome for couples with complex asset holdings.
Asset Valuation of International Properties
Valuing international properties presents its own set of challenges. Each market operates under unique conditions, and factors such as local market trends, currency fluctuations, and varying appraisal standards can significantly impact the valuation process. Accurate valuation is essential to ensuring equitable asset division.
Four tips for approaching asset valuation of international properties:
- Engage local real estate experts who understand the specific market nuances.
- Consider currency exchange rates and potential fluctuations during the valuation process.
- Regularly review market trends and adjust valuations accordingly.
- Hire finance professionals and valuation experts experienced in assessing the types of assets you hold
The Risk of Hidden Assets
In complex divorces, one spouse may attempt to hide assets to gain an unfair advantage in the divorce settlement. This risk is higher for couples with international accounts and property, where hiding assets may be easier.
According to Nevada laws, both parties must fully disclose all assets, including those that are offshore or foreign. Failure to do so can lead to legal penalties. If you suspect your spouse is hiding foreign investments, it is critical to consult with your attorney.
Three steps to take if you believe your spouse is concealing assets:
- Gather documentation of all known assets and financial statements.
- Hire a forensic accountant to investigate and trace hidden assets.
- File a legal motion to compel asset disclosure through the court.
Importance of Experienced Legal Counsel
Given the complexities of international assets in a divorce, you are encouraged to work with a law firm experienced in handling high-net-worth divorces with international components. Firms like ours, Ford & Friedman, have the experience and skill to guide you through jurisdictional challenges, asset valuation, and legal compliance issues.
Our Nevada-based law firm understands how difficult divorce can be for couples with international holdings. We are equipped to handle even the most complex divorce cases. Prospective clients are invited to contact us for a consultation to discuss their specific needs and concerns.