If you are considering filing for divorce, you most likely have questions about the divorce process. Divorce is, of course, an emotionally stressful issue on its own, but if you or your spouse is a high net worth individual, your divorce may become even more complicated financially. However, by educating yourself and hiring a trustworthy attorney, you will mitigate the chances of extreme financial suffering. If you are a high net worth individual seeking a divorce, here are some of the questions you may have:
Do I qualify for a high net worth divorce?
If you or your spouse have assets worth one million dollars or more, your divorce will qualify as a high net worth divorce. These divorces usually incorporate all the things that regular divorces entail, however, high net worth divorces include additional financial elements as well. Since you are a high net worth individual, the terms of your divorce will also involve your larger assets, such as multiple properties, professional practices, and businesses. This is why the courts will generally ask you for several documents concerning your financial situation. Some of these documents are:
- IRAs
- 401(k)s
- Defined benefit pension plans
- Real estate holdings
- Restricted stock
- Professional license
- Prenuptial agreements in place
- Involved tax structures and planning
- Widespread investments, including bonds, stocks, and investment properties
- Bonuses that do not vest immediately
- Offshore assets
- Business ownership, including partnerships and limited liability companies/corporations
You must provide the court with this information on top of all the standard divorce documents, such as pay stubs, W-2’s bank statements and more. The reason for submitting this information is so that the courts get a better understanding of how your marriage functions financially when it comes time to divvy your assets. If the courts find any discrepancies, they are legally bound to share this information with the Internal Revenue Service, so you must be accurate in your claims.
Can you protect yourself from high net worth divorce troubles?
Fortunately, you can. By signing a prenuptial agreement before you are married, you protect your hard-earned assets. If you and your spouse did not draft a prenuptial agreement, you may also draft a postnuptial agreement. While this may be a taboo conversation to have, it may ultimately give you the peace of mind you deserve. If you are a high net worth individual and are considering filing for divorce, you should hire an experienced attorney as soon as possible to guide you through the divorce process.
Contact our New Jersey 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.
