It is no secret that the process of going through a divorce can be complex and emotionally exhausting. It requires separating two lives that were brought together over a period of time. Part of this separation includes dividing a couple’s assets. While this is usually a difficult feat, it can be even more so if both spouses are of high net worth. When facing a high net worth divorce, it is important for spouses to protect their assets. In these situations, spouses can benefit from retaining the services of an experienced attorney to handle their case.
What is a High Net Worth?
Spouses who have assets that are worth one million dollars or more can qualify as being of high net worth. If they decide to divorce, it is known as a high net worth divorce. These situations are similar to other divorce proceedings, as they deal with settling the couple’s marital assets. This can include child custody, child support, spousal support, and the division of assets. However, in situations of a high net worth divorce, proceedings can become more complicated because they involve assets such as:
- Intricate retirement and deferred income structures
- Business ownership, including partnerships, and limited liability companies/corporations
- Tax structures and planning
- Real estate holdings
- Widespread investments
Do I Have to Provide Financial Information?
When a high net worth divorce is contested, both spouses must provide proof of their finances. This can include tax returns and net worth statements. This provides the court with a full understanding of the finances within the marriage. With this information, the court can evaluate what each spouse is worth and how they can accurately divide assets between the two of them. The information is also shared with the Internal Revenue Service (IRS) which ensures there are no discrepancies within the financial claims. It is because of this that couples must be truthful in sharing their information.
How Can You Protect Yourself?
It is important to know that spouses can protect themselves from difficult financial situations in the event of a divorce. This can be done by drafting and signing a prenuptial agreement before the marriage is official. This is a document that allows couples to predetermine what happens to their assets if the relationship does not work out. Spouses are also able to get a postnuptial agreement to achieve the same goals. However, this document is signed after the marriage is valid.
Contact our Firm
If you need an experienced legal team to guide you through your divorce, contact Townsend, Tomaio & Newmark L.L.C today.
