The term “complex asset” often arises in the context of divorce – particularly among high-income or high-net-worth couples. But what exactly does it mean? The definition of this term is highly elusive, and you may receive differing explanations depending on who you ask. That being said, it is very important to understand both the definition and the implications of a complex asset in North Carolina. Often, these complex assets prove to be the most important subjects in property division discussions. The manner in which you address and resolve complex assets could define not only the outcome of your divorce but also your financial security for the foreseeable future.
Complex Assets Are Often Difficult to AssessA key element of many complex assets is their questionable value. This may be the defining factor that makes a particular asset so complex. Often, one spouse believes that a complex asset is much more valuable than it appears at face value – while the other spouse may argue the opposite. Some assets have very clear market values. For example, it is relatively easy to look up the value of a used car, and there are websites that can provide you with an accurate market price based on the model, make, and year of the vehicle.
Other assets are almost impossible to evaluable with a simple web search. Examples include collectibles, pre-IPO stocks, and art. Even real estate can be quite difficult to assess, as market forces may be completely unpredictable. Unfortunately, sometimes, the only way to accurately evaluate a particular asset is to expose it to these market forces. In other words, you may need to sell the asset to figure out what it is worth. Of course, this might not be ideal – especially if one spouse is intent on keeping the asset after the divorce.
Fortunately, your divorce lawyer in North Carolina can help you determine the value of a complex asset with assistance from professional appraisers. For example, an art appraiser can examine a priceless sculpture in the family home. While one spouse may claim that this sculpture is a piece of junk purchased at a nearby flea market, the appraiser may discover that it is actually an avant-garde sculpture worth millions of dollars.
Complex Assets Are Often LucrativeAnother defining feature of complex assets is their high value. Some of the most complex assets may be worth millions of dollars. This is not only due to their present market value but also their ability to generate income for the foreseeable future. For example, a real estate holding in a tourist hotspot may only be worth $100,000 at market value – but it may rake in many times that amount each year in rental bookings. The higher the value of a particular asset, the more likely spouses are to fight over it.
Complex Assets Are Often Difficult to LiquidateEven if both spouses agree that selling an asset is the best possible option, it may be very difficult to liquidate the property and access the funds. This often proves highly frustrating for both spouses, especially if the asset is worth millions of dollars. Complex assets have the potential to delay divorces if they cannot be sold.
Complex assets might be difficult to sell because they are only seen as “valuable” to specific buyers. It may therefore take months to find someone willing to purchase the item. This might be an art collector, a business investor, or someone who collects obscure items. Fortunately, the internet makes it easier to find global buyers in the modern era.
The Self-Explanatory Nature of Complex AssetsFinally, it is worth stressing that the term “complex asset” is somewhat self-explanatory. Any asset that seems complicated or confusing would likely fall into this category. Many divorcing spouses face complex assets that few have ever dealt with in the past – such as cryptocurrencies. Businesses often prove to be incredibly complex. If you think that an asset is complex, then it becomes a complex asset by default.
Find a Qualified Divorce Attorney in North CarolinaIf you have been searching for a qualified divorce lawyer in North Carolina, look no further than Arnold & Smith, PLLC. Over the years, we have helped numerous divorcing spouses throughout the Tar Heel State address complex assets with confidence and efficiency. Even if you are not exactly sure what this term means, we can help you pursue financial security in the most effective way possible, During a consultation, we can assess whether your marital estate may contain any complex assets. From there, we can help you pursue your fair share of these assets with various proven strategies. Book a consultation today to get started.