How Is a High Net Worth Divorce Different from a Typical Divorce?
If you are entering a high net-worth divorce in the state of New Jersey, you will want to keep a number of things in mind. Continue reading and give our skilled Morris County NJ divorce lawyers. Our legal team is committed to ensuring you and your finances are protected during this stressful time. Here are some questions you may have:
What makes a high net-worth divorce distinct from a typical divorce?
With a high net worth divorce, it is important to recognize that it is financially larger than a standard divorce. This is not only due to the magnitude of the assets that need to be evaluated during the property division process, but also the nature of those assets, and the problems they can generate when attempting to equitably disperse them.
Assets that are typically a concern in a high net-worth divorce include:
- Stock options (IRAs, 401(k), etc.)
- Professional practices
- Real estate
- Uncommon, high-value personal items
- Complex tax considerations
With so much on the line, it is essential that you only move forward with a skilled and assertive divorce attorney on your side. Our legal team is trained with the knowledge and experience needed to protect you and your finances during this stressful period.
Do I need to reveal my finances during a high net-worth divorce?
When it comes to a contested high net worth divorce, both spouses are mandated to supply proof of their finances either through tax returns or net worth statements. This displays to the court an in-depth understanding of the finances within the marriage. The court will use this knowledge to determine what each spouse is worth and how they can properly split assets between the two of them. It is important to keep in mind that the information is also shared with the Internal Revenue Service (IRS) which provides that there are no errors within the financial claims. Because of this, it is important that individuals are honest with their financial reports.
How can I protect my finances?
The best way to protect your finances during your divorce is by truly understanding and internalizing your options. You can prepare and sign a prenuptial agreement before the marriage is authorized. This is a document that allows couples to decide what happens to their assets if the marriage does not work out. Spouses are also able to obtain a postnuptial agreement to accomplish the same goals, however, you will need to note that this document must be signed after the marriage is authorized.
How are prenuptial agreements used for high-net individuals?
Prenuptial agreements are commonly used in high-net-worth divorces and require a thorough understanding of the couple’s present circumstances. These agreements are organized according to both parties and their unique situations.