As many Pennsylvania residents know, divorce can turn into a complicated and stressful situation for the parties involved depending on the circumstances. When the situation is a high asset divorce, certain individuals may want to ensure that their assets are protected and that they will get their fair share when it comes to division. Determining who may be entitled to what when it comes to divorce can be difficult to work through and in many cases, outside assistance may be needed.
The account of one man being worried about how his approximately $150 million in assets would be divided when he was going through divorce serves as such an example. He was not looking to keep all of his assets for himself during the divorce, but he did want to ensure that his children and grandchildren would be entitled to as much of his wealth as possible later on. Because he was worried about what his to-be ex would demand in the separation, he wanted to be prepared.
He sought advice on how to handle the situation, and trust accounts were legally set up offshore to ensure that the money in them went toward the needs of his children and grandchildren. This strategy has many steps and complicated circumstances, and should not necessarily be attempted by those with significantly lesser asset worth. The fees alone that can go into undertaking such an endeavor can reach six figures.
However, a high asset divorce can sometimes call for such measures to be taken. It is important to understand the risks and consequences of protecting assets, and discussing options with a knowledgeable third party could help determine the best route for an individual to take depending on the circumstances. Pennsylvania residents who are concerned about their assets during a divorce may wish to look into state laws regarding property division and other relevant financial laws for reliable information.
Source: The Wall Street Journal, Protecting Assets in a Messy Divorce, V.L. Hartmann, Oct. 2, 2013