One of the best methods to protect assets and wealth is through careful planning. A domestic contract can be a great tool to protect a person’s assets throughout a marriage. Domestic contracts are sometime referred to as Prenuptial Agreements. These types of agreements can help outlined precisely what the terms would be around property, in the event of a separation.

More info about Drury Family Law

There are also tools that can be incorporated into the agreement, to protect the privacy of such documents.

Protection and Discretion
Some families may hold assets through different legal entities, for the purpose of maximizing their ongoing income and limiting their ongoing expenses. The methods by which these arrangements are organized, lends themselves to discretion and privacy.

It is imperative these arrangements remain private and confidential. In fact, in some cases the act of making these arrangements public could result in tax consequences, negative effects within a given market, and an outright catastrophic impact on the value of a business. At times, the best course of action in scenarios with high-net-worth individuals is to engage I in a closed dispute resolution system. This ensures discretion and accuracy when negotiating a resolution.

Tax Consequences
When determining the best possible outcome for clients, consideration of disposition costs and taxable interest are essential. Typically, the necessity to work with expert accountants early on can assist in maximizing outcomes.

In addition, when determining a fair property settlement, consideration is given to parties’ net worth on the date of separation. The process of property negotiation in family law, involves ensuring a fair sharing of family property following separation. In order to determine each person’s net worth, a fair and accurate determination of the disposition costs of assets is needed. Failure to consider that one might pay to dispose of an asset, fails to take into account a clear picture of a person’s net worth.

One key consideration is the notional tax to dispose of pensions, RRSP, and business assets. A professional opinion as to the cost of capital gains, may save some parties significant amounts of money, when negotiated a property settlement.

Valuation of Assets
Corporations and other business entities will need to be valued during the course of working out an appropriate resolution. However, the Family Law Act, does not specify the method by which business valuators can value assets. It is imperative that early consideration be made to the different types of valuations that can be completed on a given asset. Simply trusting the other side in their valuation could result in a substantial change in the property settlement.

It is the job of the person with whom the asset is owned to have that asset valued. However, in the circumstance that both parties jointly own a corporation, it may be necessary to have both parties consult with business valuators in order to understand the most appropriate methodology to utilize.

Determination of Income
Income determination can be a consequential issue in high-net-worth families, particularly when one party is not compensated in a typical manner. Moreover, it is more difficult to determine when a party is able to fix their income through a controlling interest in a corporation. Spousal support and child support flow from a payor’s incomebut may not be easily determined based on their tax return.

In the event a payor is able to deduct certain expenses from their income, control the setting of their income, or reduce their income in some fashion, the recipient may move to have a determination made that the payor’s reported income is not an accurate reflection of their earnings. Typically, in a scenario where a party’s income is determined by a number of privately held entities, an income analysis is helpful in determining an appropriate income amount.

Tracing Assets
One of the most common questions that is raised in matters concerning complex corporate and trust assets arrangement concerns tracing assets. In the event a party has a myriad of assets, in different countries, a forensic audit may be helpful in determining the precise amount of beneficial interest a party may have. If a party attempts to divert assets to other legal entities, in order to avoid sharing family assets, the Family Law Act, has tools available to address these activities. One of the best tools is the appointment of a forensic auditor to audit a person’s assets, to ensure they are not attempting to avoid property entitlements unlawfully.