Divorce proceedings can prove to be complicated and time-consuming. When one or both spouses have a high net worth as an individual, this process can become more stressful. Those with high net worths often have more assets in their possession. If the couple has retained a prenuptial agreement, this can create a smoother process. A prenuptial agreement already separates their property between the two of them. With this in place, some of their assets can be divided easily since they are claimed in a legally binding document. The rest of the process will practice equitable distribution to divide the assets as every other divorce would.
How is a high net worth divorce different?
Since high net worth individuals often possess more assets, the division of these can become more time-consuming in divorce proceedings. These divorces can be impacted by prenuptial agreements, 401(k) plans, defined benefit pension plans, IRAs, restricted stock or stock options, business ownership, professional licenses, involved tax structures and planning, offshore assets, bonuses that do not vest immediately, real estate holdings and widespread investments. All of these possessions can add up to make someone’s net worth a high one. These individuals may also have debts that they have accrued over time.
Whether you are the high net worth spouse or your spouse is, you should seek legal counsel. As someone with a high net worth, you want to make sure that your rights are protected since you may have to face an investigation into your assets to disclose your final net worth. If you are the opposing party, you should also have someone working on your behalf to seek a fair outcome.
What is equitable distribution?
The state of New Jersey practices equitable distribution for assets to be distributed during divorce. Judges use this to concept to split the marital assets between the spouses to ensure a fair allocation. However, this does not mean the distribution will be equal. The final decision on the distribution is made by a judge after the consideration of many factors. Equitable distribution is a concept used to provide a fair and just division of assets, not an equal division.
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.