When couples with high-value assets decide to divorce, dividing those assets can be a contentious issue. In California, which is a community property state, the division of complex assets such as art collections, rare collectibles or intellectual property can be challenging.
If you are facing a high-asset divorce, you may wonder: How can mediation help you navigate disputes over complex assets? In addition, what are the benefits and drawbacks of this approach?
The pros and cons of using mediation
In mediation, a mediator or neutral third party helps facilitate a conversation to resolve disputes. Thus, it can be a valuable tool in resolving disputes over complex assets in high-asset divorce cases. Among the benefits of using mediation are:
- Preservation of asset value: It allows couples to work together to find a solution that preserves the value of the complex asset. This can reduce the risk of its decrease in value through traditional litigation. Also, this can be important for assets that are sensitive to market fluctuations or with a limited buyer pool.
- Customized solutions: It also enables couples to think outside the box and find creative solutions to protect their unique interests. This can be useful when they have complex assets that require a tailored approach to division.
- Confidentiality and discretion: It provides a confidential and discreet forum for resolving disputes over complex assets. This can be crucial for high-net-worth couples who value their privacy.
However, mediation may not be suitable for all couples, especially those with a history of conflict or abuse. Also, mediation may not be effective if one spouse or both are not willing to compromise or negotiate in good faith during the property division process.
Aiming for a fair property division
Dividing complex assets can be a daunting task. By knowing the pros and cons of mediation, you can make informed decisions about how to go through your high-asset divorce. Further, seeking legal counsel can provide you with guidance in managing the intricacies of the law as you aim for a fair division of your assets.
