High Value Assets

Having the expertise of a lawyer who understands high-value assets is crucial.

Many clients often ask our lawyers, "I have a pension and stock options, are those subject to an equalization?" The short answer is yes - all of those items are "property" and subject to an equalization. Retaining a lawyer who understands the income tax implications arising from your divorce in dividing high-value assets is crucial to your success as part of your separation. At Sherman Law LLP, we have experts in forensic accounting, corporate law, and wealth management that we consult to assist in these areas to ensure that your assets are given proper consideration. Our Kitchener family law lawyers can assist you with the valuation and division of complex assets as part of your separation and divorce, including:

• Compensation for executives

• Privately held corporations

• Family trusts

• Preferred and special shares

• Investment properties

• Real estate

• Pensions (Defined Benefit and Defined Contribution)

• Stock options

• Reduce tax obligations arising from division of assets or spousal support

• Use tax advantages when paying child support or spousal support

• Negotiate spousal support so that you can have a clean break and not be responsible for ongoing support obligations

• Protect your professional reputation and maintain confidentiality as part of the separation and divorce proceedings

When dealing with stock options, we always suggest to our clients that an expert valuation is critical to address issues such as vesting, restrictions, legitimate tax planning, and deferred income. There are also circumstances where a double-dipping argument may apply to avoid the holder of the stocks from paying support on equalized stock option income. When dealing with pensions, there are circumstances where valuation is necessary by an actuary, including health considerations and early retirement. Often pensions that are not in payment can be equalized internally, such that a pension-holder does not have to come up with other assets to defray the value of their pension. 

Collaborative divorce can be an effective tool for conflict resolution.

For those spouses who are executive and business owners, collaborative divorce and family law can be a valuable tool for conflict resolution because it can reduce the impact a divorce will have on their work, their employees, and the business performance.

For high-net-worth individuals with established businesses, the financial situation for both spouses can be complicated. One of the most challenging situations, in terms of both personal and financial implications is when spouses are also business partners, where the exit of one spouse can have a major impact on operations. In this regard, we suggest that spouses at the time of marriage pro-actively prepare themselves upfront though marriage contracts and shareholder agreements, in order to protect themselves and business should divorce occur.

However, there are also other ways to minimize the negative impact on both the individuals involved and their business. Research from the Canadian Research Institute for the Law and Family (CRILF) indicates that couples who choose to avoid the courts and instead use alternative dispute resolution processes such as collaborative divorce and family law and mediation benefit from resolving their dispute quicker and with lower legal fees than the traditional litigation process.