The Challenges Of High Net Worth Divorce
Getting divorced in New Jersey can be a complex matter. This is even more true when one or both parties in the divorce have many assets. If so, the resulting proceedings can be even lengthier and more contentious than normal. Oftentimes, the higher the couple’s net worth, the more complicated a divorce gets. For example, if you own a second home or luxury items, the property division process could be contentious and require thorough investigation from forensic accountants or appraisers.
Our attorneys at the law firm of Carolann M. Aschoff, P.C., have experience with complicated high net worth divorces. You can trust our knowledge of solutions that will best serve your interests.
Untangling Assets Can Be A Nightmare
One of the biggest issues in a high-asset divorce is the sheer number of highly valued properties that are at stake. Most couples who divorce have a finite number of assets valued reasonably. A high-asset divorce can involve lucrative business interests, retirement accounts, family and small businesses, stock options, stock-based voting rights, and real estate partnerships. People with high assets may also run into tax issues during their divorce.
You and your spouse may find yourself wrangling over assets secured in a trust. The result can be a legal and financial battle that drags on for an extended period. Untangling and properly assigning each asset will require negotiation and mediation. In the end, both parties must find a settlement they can agree to.
How To Get Assets Organized
Untangling these assets is a lot of work. And when the value of your assets is high, you want to make sure you get things right the first time. Having an attorney on your side who understands your situation is essential. A divorce lawyer who has worked with high asset division before will have a better understanding of these processes when high-value assets are involved.
These divorces are not quite like others and it’s crucial to work with a lawyer who has specific experience with high assets and all the extra factors and considerations that come with this process. They can help you organize everything and make sure you get a fair settlement when the dust settles after your divorce.
One way to get organized is to begin to compile a list of your assets. People with a high net worth may have extensive assets, including but, of course not limited to:
- Real estate: Your family home, vacation homes and investment properties
- Vehicles: Your primary cars and other vehicles, including boats, cars, planes and recreational vehicles
- Retirement accounts: 401ks, pension accounts, Roth IRAs
- Stocks and investment accounts
- Savings accounts, college funds etc.
Once you begin compiling this list, you and your attorney can ensure you’ve accounted for everything and begin planning for asset division. The list can give both you and your divorce lawyer a better understanding of what to expect during the process.
Alimony And Child Support Payments
High-asset couples who are undergoing a divorce will also have to negotiate over the future of their children. This is an issue that requires a great deal of compromise and care. Some of the issues involved may be the cost of private education or funding for college. Day care and child support are issues that lead to much financial haggling.
Couples with high assets will face several hardships while attempting to separate their interests into fair amounts. Negotiation, mediation and civil communication are key to making it through divorce amicably, especially when it comes to the continuance of care for the children involved.
When determining if spousal support or child support payments are necessary, court will consider the standard of living you maintained during marriage. You and your children have a right to a similar lifestyle after marriage.
Are Stocks Divided In A Divorce?
When you file for divorce, all the assets and money you own will be evaluated to determine how everything is divided between both spouses in New Jersey. The finances also include stocks that have been acquired during the marriage. It’s not always a straightforward process because of different hurdles that may be in place.
Some lawyers will recommend a forensic accountant to ensure you’re aware of all assets that are in the other party’s name. The forensic accountant’s services include valuing the stocks and explaining the best options on how to obtain your share. Some people may consider selling the stocks, splitting the investments, or giving the stocks away. Stock options through employers can be even more complicated to divide.
How To Prepare Your Stocks For Divorce
You can manage your financial investments when you’re preparing for divorce by updating your account beneficiaries, obtaining access to investment accounts, splitting retirement accounts, and also enlisting the help of professionals. You can also consider dividing taxable investment accounts with your spouse when going through a high-asset divorce. Before you choose to sell any of the stocks, you’ll need to consider the tax penalties. You may also need the approval of your spouse to sell anything or you could suffer from penalties while going through the divorce.
Contact our high net worth divorce attorney for assistance in navigating divorce and determining what will happen to any stocks you may own, or your spouse has acquired. You can learn about your rights and obtain guidance from our attorneys who have experience.
Get Your Questions Answered
Our lawyers have a deep understanding of divorce law. We have achieved favorable results for our clients both in negotiation and trial, fighting for our clients’ interests, assets, custody rights and other important divorce matters.
To speak directly to an attorney about your case, please email us or call us at one of our three offices, Jersey City at 201-793-7739, West Caldwell at 973-200-4892 or our Bayonne office at 201-793-7739.