Protecting Your Venture Capital Interests in High Asset Divorces

High-asset divorces come with a variety of unexpected challenges and hurdles that other couples don’t have to handle. Generally, the more money a couple has, the harder it is to split up their assets when they divorce. While a couple of standard means may have retirement accounts, a couple of bank accounts, and a family home to split up, high net-worth couples often have diverse, complex portfolios that are incredibly difficult to value and split up in a fair way. This is especially true when a couple has venture capital interests.

Interested in protecting your venture capital interests in a Charleston divorce? We can help. Call Pence Law Firm at 304-345-7250 to set up a consultation with our team right away.

How Venture Capital Interests Are Treated in Divorce

Depending on when you acquired your venture capital interests, they may be considered separate or marital property in West Virginia. People invest in startups and businesses when they believe in their long-term potential, and once your investments come to fruition, you may enjoy significant financial benefits. However, the time at which you made your investments and when you pulled your returns from your investments may determine how they are split up.

To determine this, pull all of the documentation you have for your investments. You’ll want documentation on where the investment money came from, when you transferred the investment funds, under whose name the transfer was made, and when you expect to collect your returns. Your attorney can use this to help you determine if you will be able to keep your venture capital interests separate or if they will be treated as marital property.

Legal Considerations

In West Virginia, assets that are acquired prior to a marriage or after a couple has separated are generally considered separate property. This is the best outcome for you since separate assets do not have to be divided during divorce. However, if you invested in venture capital funds during a marriage, used marital funds to make your investments, or used the returns to benefit your family, it’s likely that your venture capital interests will be considered marital property.

It’s also important to look at the role that you both played in your venture capital interests. For example, if both parties researched potential investment opportunities, put their names on major purchases, and presented themselves as a united front to business owners, it would be hard for either party to claim that their venture capital investments were their sole property.

However, even if one party was exclusively responsible for handling the business side of the marriage, that doesn’t mean that their venture capital interests would be considered separate property. Even if one party does not make financial contributions to marital assets, their non-financial contributions are enough to warrant a fair division of shared property.

Protecting Your Interests

If you have a significant amount of money invested in venture capital interests, it’s likely that you’re highly motivated to keep those investments to yourself as you prepare for life as a single person. This is why we recommend talking to a Charleston divorce attorney as early as possible in the process. If you’re driven by the value of your venture capital interests, odds are good that your ex-spouse is also interested in getting their fair share of them. By bringing in an attorney early, you can get realistic and practical guidance regarding how likely you are to keep your venture capital investments separate and what you possibly stand to lose during negotiations.

Perhaps you are willing to make other sacrifices during a divorce to keep your venture capital interests separate. For example, maybe you are willing to give up your fair share of the marital home or investment accounts to support a fair division of assets. You can discuss these options and other potential strategies with your lawyer.

Explore Your Legal Options with Pence Law Firm

When you’re ready to move forward with your divorce, it’s time to talk to the high-asset divorce team at Pence Law Firm. We understand that you face unique challenges and that you need experienced legal representation throughout this process. Get started now by calling us at 304-345-7250 or sending us a message online.