When wealthy people divorce, they typically have high-value assets to divide. It can be challenging to sort it all out, deciding who will get what in the divorce. Since Virginia is an equitable property division state and not one that follows a community property regime, that gives you a little more leeway to determine which assets to seek.
Still, the more a couple acquires during a marriage, the more there is to divide – along with any accompanying debts. Let’s delve a bit further.
Do you need liquidity?
Keeping the antiques, the wine collection or the sportscars can be tempting for sure. After all, if these universal symbols of status didn’t matter, you wouldn’t have invested in them in the first place. But you must be practical here.
What are your most vital priorities? If you’d like to keep the country club membership, closely examine its terms after a divorce and the annual costs and any upkeep charges. You could learn that you have no right to it at all if it was first issued in your spouse’s name. It might make a good trade-off for some of your other, more liquid (or easily liquidated) assets.
What about the family home?
With a red-hot real estate market, selling the house is often the wisest choice financially. But now, interest rates are on the rise, throwing a monkey wrench into many prospective homebuyers’ plans. You might want to ride out the plunging market and revisit the matter at a future point.
There may be children to consider, too. Divorce is tough enough on kids without adding the disruption of losing their home, moving from familiar neighborhoods and perhaps even changing school districts.
You always have options
There will be fallout from your divorce, but with knowledge and strategy, you can help reduce the negative impact on your and your children’s lives.