While going through a divorce is difficult for any couple to go through, there are unique concerns that couples with a high net worth must face. Due to the substantial amount of assets involved in a high-net-worth divorce case, these cases can take longer to resolve, and many require the support of additional professionals, such as a financial advisor or forensic accountant.
High net worth individuals are defined typically as individuals with $1 million or more in liquid assets. These individuals often have multiple sources of income and may have substantial investment portfolios.
At Jason M. Barbara & Associates, we support our clients with their high-net-worth divorces, providing them with comprehensive support, knowledge, and the professionalism they deserve as they navigate their case.
How High Net Worth Divorces Are Different
Generally, a high-net-worth divorce can be more time-consuming and complicated due to the amount of assets and property involved. While it is common to think only of income as the main factor that determines an individual’s net worth, there are many other kinds of assets that should be considered. These assets include other properties, businesses, investments, intellectual property, inheritance, expensive items like vehicles, boats, and planes, retirement accounts, and much more.
Additionally, if you and your spouse run a business together, you will also need to determine how you will divide this business.
Ways to Prepare Yourself for a High-Net-Worth Divorce
As the value of your investments can fluctuate, these fluctuations must be considered when dividing a divorcing couple’s investment portfolio. You will also need to consider the tax burdens that will when dividing investments. Additionally, retirement accounts may need to be divided through Qualified Domestic Relations Orders (QDROs). Here are some ways to prepare yourself for a high asset divorce:
Hire additional professionals as is necessary
You may need to take additional steps in a high asset divorce, such as hiring a professional to help you with a business valuation or a real estate agent to determine the value of one of your investment properties. If you feel your spouse is hiding assets, you may also need to hire a forensic accountant to uncover these.
Write down a list of all your assets
You will need to understand what your net worth is with all your assets as you prepare for a divorce. Writing down a list of these items will also help you figure out which assets you would prefer to keep after the divorce and which you are willing to negotiate with your spouse.
Consult with an experienced high-net-worth divorce lawyer
Divorce can get complicated, especially if you are faced with a contested high-net-worth divorce. To determine your course of action for your divorce, consult with an experienced attorney who will fight to protect your interests. A lawyer can also help you with the following:
- Determine if mediation is an option for you
- Protect assets that are important to you
- Figure out which assets are marital property
- Help you enforce a premarital agreement
- Help you resolve child custody issues
- Determine spousal support
- Divided shared interests in a business or businesses
Committed to Helping You Secure a Favorable Divorce Outcome
At Jason M. Barbara & Associates, P.C., we understand the difficulties associated with a high asset divorce. As these divorces can quickly become contentious, it is beneficial to speak with a lawyer who will advocate on your behalf. We are committed to ensuring our clients have the support, knowledge, and compassionate counsel they need to secure a favorable divorce settlement.
If you have questions about your high asset divorce, secure a consultation with our office online or by calling (516) 406-8381.