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High-asset divorce need not be a high-priced process

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A highlighter outlines the word 'divorce'On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Tuesday, June 27, 2017.

When wealthy British Columbia residents file for divorce, they typically have different concerns than those with more typical incomes. For most people, the costs of a divorce are the primary concern, and litigation is often too expensive. When it is a high-asset divorce, the process is usually affordable, and the concerns of both parties are often more focused on protecting their wealth.

However, even a high net-worth couple can limit the costs of a divorce if they are able to avoid litigation. Collaboration or mediation are alternatives that allow divorcing couples to maintain control of the outcome — something that may be lost if the judge is the one to make important decisions that can affect post-divorce financial stability. The level of a couple’s wealth should not determine their ability to negotiate contentious issues and compromise when necessary.

Another process that can save significant amounts if avoided is valuation battles. Going to court to fight these battles can ruin anyone’s finances, while the services of forensic accountants can obviate the need to litigate. Spending thousands of dollars to seek hidden funds is also best avoided unless there is definite proof rather than gut feelings.

The truth is that any British Columbia couple committed to resolving their divorce issues without litigation may be able to save hundreds of thousands of dollars along with a lot of time and trauma. However, a vital ingredient in this recipe is an experienced divorce lawyer who is skilled in navigating a high-asset divorce. Such a professional will have the necessary resources to get valuations and assessments done. These may include forensic accountants, tax advisors, realtors and more.

Check us out if you have any questions about family law:

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
https://www.laughlinlaw.ca

Family Lawyers in Coquitlam

Source: theglobeandmail.com, “Note to wealthy people considering divorce: Stay out of court“, Danielle Boudreau, Accessed on June 23, 2017

Disagreements about money not limited to a high-asset divorce

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Tuesday, April 18, 2017.

Disagreements related to finances cause a significant number of marital problems in British Columbia. Regardless of whether it is a high-asset divorce or a middle-income couple’s divorce, money often brings contempt. It has been suggested that many couples go for marriage counseling when financial counseling is what they really need.

The importance of having a money talk before the wedding is often emphasized. Not doing so could lead to disastrous consequences for couples with markedly different ideas about financial management. Some understanding and compromise will be necessary when two people from different socioeconomic backgrounds come together to share one budget. One may be a big spender while the other partner might have lived a life of saving and strict budgets.

Some advisors suggest that couples may do well to share the financial responsibilities and work together when budgeting and balancing finances to avoid any mistrust if only one spouse takes responsibility for managing family finances. Furthermore, many advise that a bank account for household expenses and other mutual financial obligations should be shared. It is often said that most financial problems in marriages stem from the lack of continuous open discussions about finances that ultimately lead to suspicion and doubt.

It is therefore not surprising that many divorces in British Columbia involve allegations of hidden assets by one of the spouses — especially if it is a high-asset divorce. The answer to such a situation would be to secure the services of an experienced legal aid attorney whose skills include the ability to seek and identify hidden assets. The attorney can protect the rights of his or her client and work to secure a fair and lasting divorce settlement.

Source: kiplinger.com, “5 Signs Couples Need Money Counseling“, Ash Toumayants, Accessed on April 14, 2017

Lawyer in Port Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Bitcoin often used to conceal funds in a high-asset divorce

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A couple sits staring away from each other in a divorce case.

On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Monday, February 27, 2017.

Just like the changes that the internet has brought in which emails have replaced traditional communication methods, technology has made it possible for monetary transactions to be done without a bank or a government entity. This has created a means of hiding assets in a high\-asset divorce. However, such transactions are traceable and could adversely affect the manner in which the British Columbia court treats a deceiving spouse in a contested divorce.

Bitcoin is a virtual currency that its inventor calls a cryptocurrency, and it allows peer-to-peer transfers without third parties. Those who are in highly contentious divorces might think that Bitcoin transactions are anonymous. However, each registered user is assigned a wallet address where his or her Bitcoin funds are stored. This address consists of a number string by which forensic investigators can trace and identify the wallet owner.

During a forensic investigation, any monetary transfers that are substantial will be questioned. If it is determined that those transfers were for purchases of Bitcoin — or other cryptocurrencies such as Zcash or Monero — the court may see it as dissipating of marital assets. That person will likely not receive an equitable share of the property in the asset division process based on previous examples of family law cases.

British Columbia residents who suspect a soon-to-be former spouse of using devious ways to hide funds in a high-asset divorce may find comfort in knowing that an experienced divorce lawyer will likely have access to forensic specialists who can trace funds that are concealed. A seasoned Laughlin Law Divorce Lawyer can also provide support and guidance with other divorce-related issues. These can include the division of other marital property and matters related to child custody, child support, spousal support and more.

Source: The Huffington Post, “Hiding Assets with Bitcoin in Divorce“, David Centeno, Feb. 23, 2017

Port Coquitlam Attorney

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Concealed marital property in a high-asset divorce

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Our location at Laughlin Law Coquitlam

On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Wednesday, February 8, 2017.

In many British Columbia marriages, one spouse would be in charge of the finances, leaving the other spouse vulnerable in the event of a divorce. The lack of financial skills and a comprehensive knowledge of the marital assets — especially in a high-asset divorce — can leave one spouse ignorant of the other’s attempts to hide assets. People in this position may want to question and examine the property declared by their soon-to-be ex.

Common ways for hiding assets include transferring mutual funds into personal accounts, or to friends who would pay it back after the divorce is finalized. It is possible to shield assets by the overpaying of income tax and arranging with an employer to postpone a promotion, salary raise or bonus. Payment of expected commissions can be delayed in a similar way. Another trick is to frequently withdraw small amounts of cash while grocery shopping because cash withdrawn at the checkout will show as part of the purchases on the receipt.

If the deceptive spouse owns a business, the opportunities to hide assets are even more. Some hold back on issuing invoices to clients, thereby creating false cash flow problems. It is also easy to record false expenses by pre-paying vendors, adding fake employees to the payroll and more. Augmenting business expenses by purchasing costly pieces of art or paying for exotic holiday packages can also reduce the value of marital assets.

It may be comforting for divorcing spouses to know that a seasoned British Columbia divorce lawyer will likely know where to look for concealed marital property. Experienced legal counsel will assist a client in gathering the necessary financial information. A lawyer with substantial work in commercial law will have the skills to understand multifaceted financial portfolios and know how to deal with business valuations and other intricacies of a high-asset divorce.

Source: aol.com, “10 Easy Ways to Hide Assets From Your Spouse“, Robert Pagliarini, Accessed on Feb. 3, 2017

Attorneys Port Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

High-asset divorce need not cause financial ruin

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Wednesday, December 28, 2016.

One of the primary concerns of people in British Columbia who are considering divorce may be the cost. Contested divorces — especially a high-asset divorce — can cost tens of thousands of dollars and in some cases even hundreds of thousands. However, some steps can be taken to limit the costs — before, during and after the filing.

Before filing for a divorce, each spouse may want to prepare him or herself financially by educating themselves about all their debts and assets. Then, they should draft a budget based on the money currently spent on all expenses, followed by a post-divorce budget. This must include rent, vehicle costs, living expenses, child-care charges and — where applicable — spousal and child support. Not only assets are split in the property division process, but also debts, so attention should be paid as to how that will be divided. Discussing the divorce options with an experienced divorce lawyer can further help to identify ways to save time and money.

It may be best to try to check emotions during this time and avoid any actions that involve revenge, payback or settling of scores. Couples who can communicate and compromise to reach mutual agreements can bring about significant savings. During negotiations, it is important to understand how the court will determine child support and an estimate of the amount the court will order. Also, remember that spousal support is not guaranteed and settling that in negotiations may be wise. Each party may benefit from adding professionals, such as tax and property advisors, to their respective support teams to provide advice on tax implications and more.

During all the preparation and negotiation proceedings, each spouse’s legal counsel can provide valuable support. The time and money involved in a high-asset divorce depend largely on the ability of the parties to resolve contentious issues. However, with the professional guidance of a seasoned British Columbia divorce lawyer, a divorce that fits the family dynamics while being financially fair at the same time can prevent either party from going broke in divorce.

Source: business.financialpost.com, “Divorce is never easy and your heart may be broken, but that doesn’t mean your wallet needs to be too“, Melissa Leong, Accessed on Dec. 24, 2016

Coquitlam, British Columbia Lawyers

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/

High-asset divorce: Hidden assets can be discovered

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Monday, December 5, 2016.

During the process of divorce in British Columbia, each spouse must provide full disclosure of all his or her assets. Sometimes, one spouse may try to slant the property division for his or her personal benefit by hiding assets. Although this is not a phenomenon limited to a high-asset divorce, the many levels of investments held by affluent couples may make it easier to leave some assets undisclosed.

With the appropriate legal assistance, a British Columbia spouse can ensure his or her spouse does not hide any assets. The spouse who handled the family finances and taxes may have an advantage when it comes to identifying assets for property division. Both spouses are expected to provide asset declarations voluntarily, but it is advisable to study such a document carefully. If any omissions of errors are present, the suspecting spouse can demand copies of financial records for which court-issued subpoenas may be required.

A spouse also has the right to serve an ex with interrogatories — written questions that require truthful answers — within a specified time. He or she may personally inspect assets or use the services of professional appraisers if values of assets are disputed. In addition to being required to answer questions in writing, an ex can be compelled to give sworn testimony. Called a deposition, this testimony is typically admissible in court.

If a spouse suspects an ex of hiding assets, the most appropriate step may be to consult with an experienced divorce lawyer. The attorney will know which discovery tools are appropriate for achieving a fair outcome. With a seasoned lawyer’s guidance, a divorcing spouse may receive a fair share of property — regardless of whether it is a high-asset divorce or not.

Source: FindLaw, “Legal How-To: Finding Assets in a Divorce Case“, Daniel Taylor, Accessed on Dec. 2, 2016

Lawyer in Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Property division in British Columbia must follow certain rules

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Friday, October 28, 2016.

Divorcing your spouse means that you will have to divide your property based on the laws that pertain to your case. Some property, such as the marital home, are always divided. Other property, such as certain inheritances, aren’t subject to the property division property.

In British Columbia, the property division process sets some specific property as separate property that doesn’t have to be divided. This includes money that is received or is payable through an insurance policy, a settlement or award that is compensation for an injury, inheritances to one spouse, a property that was owned before the relationship began and property that is in a discretionary trust for one spouse.

It is also possible that gifts would be considered separate property if those gifts were specifically given to one spouse. In many cases, how the property is handled once it is given to a spouse matters. If the property is held with marital property or if it is cared for by marital funds, it might be considered marital property during the property division process.

No matter how property is obtained or when it is obtained, the presence of a valid marriage contract means that the property would be divided how the contract notes it should be divided.

As you can imagine, the dividing property can be complex in some cases. If you and your spouse have considerable assets, this might be the case. It is crucial that you have a complete understanding of how different assets and liabilities should be handled in your case so that you can know what decisions you need to make.

Source: FindLaw Canada, “Gifts, inheritances and other excluded properties,” Miriam Yosowich, accessed Oct. 28, 2016

Law Firm Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca

Can a marriage contract address child support?

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Friday, July 8, 2016.

A marriage contract is a document that both parties sign before getting married, and it can address many topics, such as conduct within the marriage, what is to be done with assets already owned, and what happens with assets gained during the marriage. In most cases, the focus of the contract is on the financial side of things, as people want to protect their own interests so that a court ruling doesn’t force them to turn over assets in the event of a divorce.

One of the biggest financial impacts of a divorce, though, is child support. It is typically not legal to put any provisions for this in a marriage contract. The spouse expecting to get custody and payments cannot stipulate how much will be paid, and the other spouse cannot say that he or she will pay nothing.

Instead, this still has to be decided by the court. Other assets can be divided according to the contract.

The reasoning here is that the child is not actually participating in the signing of this contract at the time of marriage, and the child is the one mainly impacted by these payments. The parent does not have the right to sign away money that was intended for that child, as it would not be fair and could be detrimental to the child’s health and well-being. Any contracts containing such language may be thrown out, or that portion at least may not be used.

When setting up a marriage contract to protect assets, always make sure you know what it can legally cover and what has to be left up to the court in British Columbia.

Source: Advisor.ca, “Marriage Contracts Protect Assets,” Margaret O’Sullivan, accessed July 08, 2016

Divorce Lawyers Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/

Post-divorce planning: Spousal support and settlement payments

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorceon Thursday, May 19, 2016.

High asset divorces often involve substantial settlements as well as long-term spousal support. It’s normal to get caught up in how much you will be paying or receiving, but there are other important details that you should be sure you understand before you agree to anything.

If you are the party receiving a bulk payment or spousal support payments as part of the divorce settlement, it’s important to understand how this money will affect your financial future. Planning is critical. Questions to ask your lawyer include when you should receive any bulk payments, such as your share of your ex’s retirement account, how long the spousal support will continue and what to do if your spouse doesn’t make these payments as he or she has been ordered to do.

For those making the payments, understanding the timing is also crucial. In some cases, you may need to make a bulk payment to your ex as soon as just a few weeks after the divorce. Some people think that their ex’s share of the retirement assets doesn’t get paid until the person actually retires, but this isn’t usually true. Knowing when the payments are due is just as important as knowing how much they will be.

Sometimes people get caught up in the fighting part of the divorce and don’t adequately prepare for what life will look like when the papers are finally signed. If you have questions about what your settlement means for your future or what to do if you think a proposed settlement is unfair, we can help.

Lawyers Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

High-asset divorce and property division

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Thursday, April 7, 2016.

While the basic process of divvying up the assets and debts is the same no matter how much the assets are worth, things do get more complicated when you start dealing with high-value assets. In some cases, you may not even be aware of all of the assets that qualify under the Family Law Act. This is one reason why it is so important to discuss your case with a lawyer in British Columbia who can help you understand how the property division process will take place and how to make sure there is full financial disclosure.

The first step is always for both parties to make a list of all of the assets. For most people, this includes bank accounts, real estate holdings and any automobiles. However, those going through a high-asset divorce may also need to consider things like investment accounts, antiques, and any businesses either party owns.

The next step is to discern the value of each of these assets. It’s important to understand that an asset is valued based on the date the couple separates or is no longer living together. This is important to keep the divorce proceedings moving along. If the property division had to be restarted every time a property value fluctuated with the real estate market, for instance, it would make coming to a settlement very difficult.

Once the total value of the couple’s property has been calculated, any debts are subtracted off this amount. The resulting figure is divided in two and this would be the amount each party would get. However, this still depends on several factors. Often, a settlement will include payments from one party to the other, called equalization payments, and a lawyer can provide more information on this.

Source: FindLaw, “Calculating family and equalization payments,” Casey Watson, accessed April 07, 2016

Divorce Lawyer Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/