Josh and his team proved their track record. I hired him at 9am and they appeared for me by 1pm the same day. Highly contested paternity case, turned dependency nightmare. He faught hard in a short time and got the results I needed. My baby back. Josh and his associates are kind, patient, diligent and aggressive. They are human. I trusted them through the whole process. I was kept informed and they faught with passion. I’d rehire josh and his team any day. It was well worth the money spent. – Rochelle
Private Equity and Illiquid Investments in Divorce Settlements
Private equity, hedge fund interests, limited partnerships, and other illiquid investments can be challenging in divorce. These assets may have substantial value on paper but may not be easy to sell, divide, or transfer.
In a Florida divorce, the issue is not only what an asset is worth. The court and the parties may also need to consider restrictions, timing, risk, tax consequences, and liquidity. A settlement that looks balanced on a spreadsheet may not function fairly in real life.
Illiquid investment concerns may include:
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Transfer restrictions in operating or subscription documents
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Uncertain valuation dates and future capital calls
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Limited access to cash before a sale or redemption event
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Tax exposure when an investment is liquidated
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Risk that projected value may never be realized
These investments often require careful review of governing documents. Some interests cannot be transferred without consent. Others may require additional contributions after divorce. A spouse who receives an illiquid interest may also receive obligations, not just value.
Settlement structure matters. One spouse may keep the investment while the other receives an offset. In other cases, parties may agree to share proceeds when a future liquidity event occurs. Each option has benefits and risks.
Because these assets may be difficult to value, expert input can be useful. Still, the legal strategy must account for more than a number. It should address timing, enforceability, and future disputes.
If your divorce involves private equity or other illiquid investments, Brodie & Friedman can help you pursue a settlement structure that reflects practical financial realities.
Contact
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