Investment Property Considerations in a High Net Worth Divorce
The distribution of property is one of the biggest concerns in a divorce and can become quite contentious, especially when there are investment properties and other assets involved. Couples with a high net worth frequently have investment properties to consider when divorcing. This is just one of the many unique issues in a complex divorce.
The family law attorneys of Gearing, Rackner & McGrath understand the laws concerning property distribution and can help you and your family resolve a high net divorce with sensitivity and skill.
Property Distribution Laws in Oregon
Oregon is an equitable distribution state. This means that assets and debts are divided fairly, not necessarily half and half. A variety of factors are taken into consideration when splitting assets and debts between a divorcing couple. For example, the length of the marriage, age, health, income, education, employability of each party, financial and non-economic contributions made during the marriage could all be considered.
There are two types of property: separate and marital. Separate property was either acquired before the marriage or something like a gift or inheritance given to one spouse during the marriage. This will generally stay with the original owner, but the courts could split it and give it to the other spouse if that is fair. Marital property is property acquired during the marriage, and the courts will assume that both spouses contributed to or helped earn it.
If a couple can decide on how they would like to split their property after a divorce, they may do so without the help of a third party. However, if this cannot be done independently or through the arbitration process, a judge will determine how property and debts are divided. High net worth couples are more likely to have a prenuptial agreement, which supersedes state property distribution laws.
Distribution of Investment Properties
Investment properties and accounts are commonly owned by high-net-worth couples. They follow the same property distribution laws as any other asset.
Like a pension, 401(k) or another retirement account, some investments may have existed before the marriage. When this is the case, the portion of the account that was started by and maintained by only one spouse will likely remain theirs. Any contributions made or value accrued during the marriage would be considered marital property.
When retirement funds are split, a document called a qualified domestic relations order (QDRO) must be completed. This order explains how the benefits will be distributed between the spouses, perhaps by creating two separate accounts. All investments, and assets in general, must be properly valued before they are split.
In an equitable distribution state like Oregon, when one spouse keeps an asset like an investment property or retirement account, the other spouse will receive a fair amount of another asset.
Contact an Oregon Divorce Attorney
The family law attorneys at Gearing, Rackner & McGrath are committed to providing their clients with exemplary service and legal representation. They are familiar with the intricacies of high net divorce and can help with any property division issues you may have.
If you are in the process of splitting assets with your former spouse in Oregon or Washington, contact the experienced attorneys at Gearing, Rackner & McGrath. To learn more about how our award-winning attorneys can help you with your specific needs, call us at 503.222.9116 or fill out our online contact form.