Understanding what qualifies as a “High-Asset Divorce” in Murfreesboro is an important first step for anyone navigating a financially complex separation. High-asset divorces involve circumstances that go far beyond typical property division or income evaluation and require planning and detailed valuation.
When substantial property, business interests, investments, or compensation structures are involved, the divorce process becomes significantly more intricate. Clear documentation and financial analysis help clarify the scope of the marital estate and support long-term stability during the transition.
Hire a Divorce Lawyer
When it comes to high-asset divorce, Evans Bulloch Parker PLLC has the experience you can expect from Murfreesboro’s oldest law firm. Our litigation history and attention to detail in trial preparation have always been a hallmark of our practice.
This helps in high-net-worth cases involving large real and personal property holdings, business assets, closely-held corporations, and intricate financial affairs.
Attorney Donald Bulloch’s experience with high-value divorce, combined with the firm’s trial and appellate practice, prepares our clients to understand complex financial information. We have the knowledge to guide you with advice shaped by years of courtroom experience.
What Defines a “High-Asset” Divorce?
In short, a high-asset divorce is one in which the spouses have a marital estate of considerable worth. This usually means complex or difficult to value assets and income sources, not just a house and two bank accounts.
Spouses might have multiple homes, investments, business or professional practices, or other income that is more complex than two typical salaries. Nashville-area cities like Murfreesboro have seen major growth in population and home values in recent years, according to data from the U.S. Census Bureau.
The city’s population has grown almost 20% in the five-year period between 2017 and 2022, adding to local business and workforce development and leading to a more competitive real estate market. These economic factors can lead to larger marital estates and make accurate valuation all the more important in a divorce. Here are common factors in high-asset divorces:
- Significant real estate investments or holdings
- Ownership interests in a business or partnership
- Retirement accounts, investment portfolios, and complex financial structures
- Executive-level or unique compensation
- Above-average household income
Real Estate and Property Appreciation
Murfreesboro is a rapidly growing city, and real estate prices are a big reason why the division of marital assets is at the center of many divorces. The increase in value of both residential and commercial property will often increase the overall value of the marital estate many times over. Homeownership, rental properties, land, or even commercial buildings may require closer scrutiny.
Tax records, appraisals, or real-estate market analysis will often become the primary forms of evidence in such cases. The cases filed in Rutherford County Chancery Court often result in a requirement for detailed financial information. Documents are required to establish each major asset or property. The ownership date determines whether the asset was acquired before the marriage.
Income and Compensation Structure
A spouse’s salary does not have to be very high for a divorce to be considered high-asset. Many high-earning couples have incomes derived from sources that are deferred, performance-based, or that vest or mature later.
This may include bonuses, restricted stock units (RSUs), stock options, profit-sharing, or deferred compensation plans. Figuring out the present value, marital portion, and long-term consequences of these income structures can be complicated.
Tennessee’s statewide median household income is $71,997, though high-asset cases typically involve assets and investments far above what is reflected in statewide medians. In practice, this means that many high-asset cases feature household incomes at the upper end of the range statewide. At this level, the court must consider each spouse’s potential earning capacity and future income.
Business Ownership and Valuation Issues
Business ownership is a common factor in high-asset divorces, including privately held companies, medical or legal practices, franchises, or long-term partnerships. Unlike bank accounts, these types of assets must be valued.
This is done differently from how traditional assets are valued. Business valuation involves the review of tax returns, revenue history, business expenses, company liabilities, goodwill, and future earning potential.
A business may impact several different issues at once in the case, including division of property, spousal support, and long-term financial planning. Any premarital or separately-owned business may still have a marital component if it increased in value during the marriage or benefited from the non-owner spouse’s work.
FAQs
How Do Courts Determine Whether a Divorce Is High-Asset?
Courts determine whether a divorce is high-asset by looking at the overall value of the marital estate, including real estate, business interests, investments, and any deferred or complex compensation structures. If assets need more detailed evaluation or present extensive documentation, the case may be considered high-asset. Complex income sources or significant financial disparities may also require a more in-depth financial analysis.
Are Businesses Treated Differently in High-Asset Divorces?
Businesses are treated differently in high-asset divorces. Ownership often requires professional valuation, as the value may include both tangible assets and intangible aspects like goodwill. Courts examine financial records, market conditions, and each spouse’s role in the business. A business can be marital property, separate property, or a combination of both, depending on when it was established, how it grew, and how marital funds or efforts contributed to its value.
How Does Tennessee Law Handle Property Division in High-Value Cases?
Tennessee handles property division with equitable distribution rules. This means property is divided fairly but not necessarily equally under Tenn. Code Ann. § 36-4-121. Courts consider contributions to the marriage, future earning capacity, separate property, and long-term financial needs.
High-asset cases may require appraisals, business valuations, and tax considerations to fully understand the financial situation. Proper documentation and evidence are key to determining what property is marital and how it should be distributed.
Do High-Asset Divorces Take Longer to Resolve?
High-asset divorces can take longer to resolve due to valuation and financial review. Courts may require more extensive documentation to understand complex holdings or income. Negotiation can help streamline the process, but significant disputes over property, business interests, or support can lead to protracted litigation. The timeline depends on the estate’s complexity and how quickly the required information is gathered and analyzed.
Contact a Murfreesboro Divorce Lawyer
A clearer understanding of what qualifies as a high-asset divorce in Murfreesboro helps clients prepare for the financial and legal steps ahead. Evans Bulloch Parker PLLC offers insight into complex asset evaluation, Tennessee divorce law, and the documentation required to navigate these cases with long-term stability in mind. Hire a divorce lawyer by booking a consultation today.