Classifying, valuing, and dividing assets is often one of the most complex components of a divorce. When spouses marry, their property is mixed. Determining who is entitled to what in a divorce can become a lengthy and complicated process - especially in a high-net-worth divorce.
Asset tracing is the process of tracing the origin of each asset. This is especially important in a high-net-worth divorce case, as the spouses may have complicated financial portfolios with multiple investments, complex tax returns, and global assets. Asset tracing can be used to determine what assets were acquired during the marriage versus those that existed prior to it. Asset tracing may also be used to reveal hidden assets, undervalued assets, or undisclosed sources of income.
What Does Asset Tracing Entail?
Asset tracing is a process of tracking the origin, movement, and ownership of each asset. The process may include:
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