Divorce is difficult for anyone. But, for high‑net‑worth individuals like those with seven‑figure incomes or multiple properties, it often becomes more complicated because of the greater assets involved. Working with an attorney who understands the nuances involved when there are significant assets and liabilities is crucial to ensuring an equitable outcome. Here are 7 things to know if you’re going through a high-net-worth divorce and how the family law attorneys at Rozin | Golinder Law can help.
A high-net-worth divorce is a term for marriages with substantial wealth between the parties. In some cases, there is a premarital wealth discrepancy between the parties. While in others, each party has significant assets. In some instances, the wealth is acquired during the marriage. Either way, these divorces usually involve complex asset division and should be handled by an attorney well-versed in this form of marriage dissolution.
One of the primary concerns in a high-net-worth divorce is asset valuation. Due to the large number of assets that may be involved, precise valuation is incredibly important. Individuals will generally want to work with an experienced forensic accountant who can provide an accurate assessment of the assets.
New Jersey law requires that assets in a divorce be distributed equitably, not necessarily equally. Hiring a forensic accountant to provide a proper valuation of assets can help ensure they are divided in a reasonable and fair manner.
High-net-worth individuals may also have real estate, investments, or business holdings that must be accounted for during a divorce. A divorce involving business ownership is often complicated and may involve parties outside of the couple. A NJ divorce attorney may need to sift through your financials to ensure an equitable distribution of property and assets.
In a high-net-worth divorce, forensic accountants often play an important role. A forensic accountant is a professional who investigates and audits financial records to ensure accuracy and appropriate valuation of assets. In high-net-worth marriages, one party or even both, may not know the true value of all of their holdings. In some cases, money may be tied up in foreign assets, real estate, or businesses under unfamiliar names. A forensic accountant can work to uncover hidden assets and ensure full disclosure of liabilities.
Tracking and verifying financial information in a high-net-worth divorce can be difficult. New Jersey law, however, requires full financial disclosure in order to ensure an equitable distribution of property. Working with an attorney can help to make sure that rights are protected and responsibilities are met.
In New Jersey, disclosing all assets is legally required. Failure to disclose assets can result in financial penalties or the awarding of additional funds to the spouse harmed by the concealment. Forensic accountants may be hired by either party to ensure the accurate disclosure of all assets and debts.
Transparency in a high-net-worth divorce is necessary. Attempting to hide assets or conceal liabilities can result in court penalties, including fines or, in some cases, legal sanctions. The court may see it as an act of bad faith, making it essential for a full and honest accounting of any property, assets, and financials that may be a part of the divorce.
One of the most contentious aspects of a high-net-worth divorce is often alimony. Alimony or spousal support in a high-income divorce is not always awarded and may be affected by several circumstances, including the length of the marriage, the ability of a spouse to earn a living, and financial contributions made by one spouse.
A discrepancy in wealth between parties is not unusual in a high-net-worth divorce. In some cases, one party may have been the breadwinner while the other stayed home. In other instances, one person may have significantly more earning power than the other. Income discrepancies, particularly where one party is unable to provide for themselves financially, are the primary reason that alimony is awarded. If the parties cannot agree on the amount, the court will determine what is equitable given the specific circumstances of the case.
Calculating fair spousal support can be tricky in a high-net-worth divorce. The parties have competing interests, causing a natural conflict. If the spouses cannot reach an agreement, the court may award an amount within its discretion. The court may award lifetime alimony if the marriage was long-term or may award temporary support. In some cases, the alimony will only last during the court proceedings or may be deemed rehabilitative which lasts only as long as is needed for the spouse to be financially independent.
It is common for high-net-worth individuals to request a prenup or postnup agreement from their spouse. A prenuptial agreement is one that is signed before marriage. It can help to set expectations in the event of a separation or divorce, including how the assets will be distributed.
A postnuptial agreement is executed after a couple is married, and usually is a red flag for enforceability purposes. While it can cover the same topics as a prenup and a party may think it is imperative for asset protection, it is highly scrutinized by the Courts and is often not enforceable.
Valid pre-existing agreements can save both time and money in a divorce. When both parties have signed a document that clearly states expectations for the distribution of assets, alimony, and other issues often contemplated during a divorce. These documents, however, must be entered into voluntarily, cannot be unconscionable, and require full financial disclosure.
Privacy is often a major consideration of one or both parties in a high-net-worth divorce. Individuals of significant means or those who own a business may not want their financial information shared with the public. It can harm their reputation or may affect their ability to do business. Confidentiality and discretion become key during the legal process.
For high-net-worth individuals who own a business, protecting their reputation is often a top priority. Negative press about their personal life or their financial situation can negatively impact their bottom line. An attorney with experience in these types of divorces can help to ensure confidentiality when it matters most.
One of the most important decisions an individual will make is the attorney they hire to represent them. Divorces are not easy. They can be costly, time-consuming, and emotionally draining. Choosing an experienced and Certified attorney who deals high-net-worth divorce is absolutely necessary. They will have the guidance and resources needed to protect you and your family now and in the future.
In high-net-worth divorces, experience makes the difference. A lawyer well-versed in high-net-worth cases will have relationships with forensic accountants and other experts that can help to ensure an accurate and fair valuation of assets. They will know and understand the complexities of business holdings, investments, and real estate. They will work to protect your reputation and your property.
If you are going through a high-net-worth divorce, contact Rozin | Golinder Law to protect your future. Our NJ high-net-worth divorce attorneys have decades of experience working with individuals of substantial means. We will fight to protect the rights of you, your family, your business, and your assets.
High-net-worth divorces can be contentious and complicated. But working with an experienced attorney can bring a fair and reasonable resolution. Contact our firm today at (732) 377-3367 to schedule a consultation.
