A divorce can be difficult no matter what. When two people choose to untangle a life together, things become complicated. There are a lot of decisions to make: child support, child custody, alimony, etc. The more assets a couple has, the more difficult it can be to divide and allocate them. For this reason, high net worth divorces can be especially intense. Read on to learn more about high net worth divorces in New Jersey.
What Constitutes a High Net Worth Divorce?
A high net worth divorce occurs when the couple getting divorced has combined assets of $1 million or more.
How is a High Net Worth Divorce Different?
A high net worth divorce is different than a normal divorce because there may be many more assets on the line. Some of these assets may include:
- Business arrangements
- Complex tax structures and planning
- Real estate holdings
- Complex retirement structures, such as pensions, 401k’s, and benefits
- Extensive investments
Each party is obligated to provide net worth statements and other financial documents. Because high net worth individuals have such large assets, they may be especially vulnerable. For example, sometimes the other party will hire a forensic accountant to ensure that all assets are exposed. If the forensic accountant were to find anything of interest, they would need to report it to the IRS, further complicated legal matters. A divorce is a difficult time regardless, so to protect yourself and your assets, it is important to have a skilled and knowledgeable attorney on your side.
How Can I Protect my Assets?
There are some ways to protect your assets early on. If you have a high net worth, you may want to consider a prenuptial agreement before your marriage. This is a document that protects your assets and states how they will be divided in the event of a divorce. Some couples shy away from a prenuptial agreement because of the stigma surrounding it. In reality, a prenuptial agreement can benefit all parties and in no way indicates a potential divorce. For those who decided against a prenuptial agreement but later changed their minds, postnuptial agreements are a good option as well. A postnuptial agreement is the same as a prenuptial agreement, but it is drafted and signed after the marriage, instead of before. If you are interested in drafting a prenuptial or postnuptial agreement, reach out today, and contact our firm with any questions regarding a high net worth divorce.
Contact our Firm
Ross and Calandrillo, LLC is a full-service divorce, family, and real estate law firm located in Mountainside, New Jersey. For strong legal representation in all of your divorce or family law matters, contact Ross and Calandrillo, LLC to schedule a consultation.