What is a High Net Worth Divorce?
Nobody pictures themselves filing for divorce at the start of their marriage. Unfortunately, divorce happens, and it is happening now more than ever. Divorce can bear a heavy burden, both financially and emotionally. What’s worse is that if you or your spouse is a high net individual, then you will most likely have additional financial concerns to worry about. If you are considering getting a divorce, here are some questions you may have:
Do I qualify for a high net worth divorce?
The qualifications for a high net worth divorce are rather simple: if you or your spouse have assets worth over $1 million, then you will qualify for a high net worth divorce.
What assets are unique to a high net worth divorce?
Not unlike regular divorces, matters of child custody, spousal support and more will come into question. You will also have to submit the standard documentation, such as W-2’s, pay stubs, bank statements, etc. However, there are several other matters that may come into consideration, including, but not limited to:
- Shared businesses, partnerships, or business investments: If you or your spouse have entered into a business together, or you and your spouse are a business owner, it may be a challenge to reach a fair and equitable agreement regarding your business assets and interests.
- Real estate and property holdings: These include your primary residence, timeshares, vacation homes, and any other properties you may have. Income-generating and commercial properties also fall into this category. Properties that were acquired prior to the marriage by either party may be excluded from the division of assets process if they are considered “separate,” as opposed to “marital” property.
- Retirement accounts, 401(k)’s, pensions, and benefits: Since these are considered shared assets during a marriage, they are subject to equitable distribution upon divorce.
Can I protect my assets in a high net worth divorce?
Fortunately, you can protect your assets in the event of a high net worth divorce. One of the most important things you can do as a high net worth individual is to draft a prenuptial agreement with your spouse before your marriage. Doing so will not only protect your hard-earned assets, but it may also help protect your family’s inheritance. However, if you have not drafted a prenuptial agreement, do not panic. You may still draft a postnuptial agreement. A postnuptial agreement basically serves the same purpose as a prenuptial agreement, except it is a document drafted after you and your spouse are already married.
Contact our New Jersey firm
You should not have to go through the high net worth divorce process alone. If you or a family member is seeking representation for a high net worth divorce case, contact Townsend, Tomaio & Newmark LLC., today.