If you are an executive in the Denver area, you may be facing a unique set of challenges in your divorce case. Not only do you have to deal with the emotional stress of ending your marriage, but you also have to protect your high-asset lifestyle and make sure that you come out of the divorce with what is fair.
What are Executive Divorces in Denver?
Executive divorces are those in which one or both spouses hold professional positions within a company such as CEO, CFO, or CMO. Executive divorces may involve presidents of companies with significant gross receivables, executive employees, officers, directors, or shareholders of large financial institutions, publicly traded corporations, or well-known private companies.
Many executive divorces include prenuptial or postnuptial agreements defining property rights between spouses. Without such agreements, the complex property portfolios held by spouses in executive divorces can cause complications in asset division.
Executive divorces are generally high-asset divorces and include the following:
- Multiple homes and vacation properties;
- Investments and business interests;
- Stock options;
- Personal vehicles and recreational vehicles;
- Real estate;
- Securities Portfolios;
- Stocks and bonds;
- Mutual funds;
- Jewelry; and
- Business partnerships or professional practices.
Every executive divorce has its unique obstacles. However, there are some hurdles faced by most divorcing executives.
The Challenges of a Denver Divorce For Executives – and What a Lawyer Can Help With
No one gets married expecting to get divorced, but unfortunately, it happens. If you’re an executive in Denver, going through a divorce can be even more complicated. Here are some of the challenges you might face during a Denver divorce.
1. Identifying, Valuing, and Dividing assets
One of the most difficult aspects of any divorce is asset division. This process can be even more complicated for executives because they likely have more assets—and more complex assets—than the average person. Executive compensation often includes not just stocks, but stock options, restricted stock units or other stock based compensation that may or may not be vested. As well, there may be bonuses, or other incentive plans. Before one could even consider how to value or divide such items, a preliminary determination has to be made as to what types of perks or awards even qualify to be classified as assets for divorce purposes. As well, it may be important to consider the tax implications of any potential division. After all, if the liquidation of an asset will trigger a tax liability, that is an important piece of information to consider in deciding what might be a fair division.
2. Child-related issues
Another big issue in any divorce is the division of time with a child or children. If you are an executive with a busy schedule, it is important to make sure that any arrangement allows you sufficient time with your children. An experienced attorney can help you negotiate an arrangement that works for your unique circumstances and ensures that your rights as a parent are protected.
3. Maintenance (Alimony)
Spousal maintenance also known as alimony is another potential issue in a Denver divorce. If you have a high income, and your spouse has been out of the workforce or earns substantially less, you may be required to pay alimony to your ex-spouse after your divorce. An experienced attorney can help you understand Colorado’s laws and ensure that any maintenance payments you are required to make are reasonable given your unique circumstances.
4. Division of debt
Finally, another big issue in any divorce is division of debt. You’ll need to figure out who will be responsible for paying off which debts, and how much each person will owe. That determination can’t be made without also considering the other elements of the case. The amount of post-divorce debt payment a person can reasonably afford to take on must also be weighed against any maintenance and child support obligations also being assumed. It’s important to talk to a lawyer about your options if this is something you’re facing.
Why You Should Hire Hogan Omidi, PC
When it comes to building a strong legal team, it’s not just about finding the right lawyer. It’s about finding the right lawyers, paralegals, and support staff who work together seamlessly to give you the best possible chance of success. You want a team of lawyers who have the right experience to handle your case. That means lawyers who have successfully handled cases like yours in the past and who know the ins and outs of the law inside and out. You also want a team that is up to date on the latest changes in the law and knows how those changes might affect your case.
Colorado is an Equitable Property Division State
When spouses cannot agree on how to divide the marital estate, the court will determine on their behalf. In Colorado, the courts divide marital property equitably, not equally. An equitable property division is based on the principles of fairness.
Marital property is any property acquired by either spouse during the marriage. Marital property does not include a spouse’s separate property. Although separate property may be taken into account.
What is Considered Separate Property?
Separate property is anything a spouse owned before marriage. It also includes properties:
- Set apart by a valid prenuptial or postnuptial agreement;
- Separate property reinvested and continuously held apart as separate property; and
- Gifts or inheritance to one spouse alone.
Separate property may be gifted to a marriage by a spouse retitling property in both spouses’ names. When a non-owner spouse increases the value of separate property through their labor, any appreciation in the value of that separate property becomes a marital asset.
Strategies for Dividing Marital Property in a Denver Executive Divorce
Whenever possible, divorcing spouses should try to agree to a property division. This allows the spouses to maintain control of any final order rather than giving this power to the court.
There are various strategies and methods of dispute resolution available for dividing executive-level assets. For instance, able spouses may be able to work with their attorneys to negotiate a settlement.
Should negotiations fail, mediation is a viable option to resolve any outstanding property differences. If privacy is of utmost concern, executive spouses can choose to go before an arbitrator for final decision-making rather than litigate in a public court.
Regardless of the method chosen, resolving executive property disputes generally relies on both spouses’ willingness to barter in the interests of equitability. The court will review any property division agreement to ensure it meets statutory requirements and that it is not one-sided.
Hiding Assets in a Denver Executive Divorce
Hiding assets in a divorce is illegal in Colorado and punishable by both jail time and civil court penalties. There is a five-year lookback statute pertaining to hidden assets in Colorado divorces.
Spouses who were previously divorced may have their property division revised up to five years after their final divorce decree if they are found guilty of hiding assets.
Contact an Experienced Denver Executive Divorce Attorney Today
At Hogan Omidi, PC, our partner literally wrote the book on Colorado family law that is relied upon by judges and other legal professionals throughout the state. If you need help with your Denver executive divorce, contact us today to schedule a consultation.
Hogan Omidi, PC, can meet and exceed your expectations. Start preparing for your executive divorce now.