Important considerations in a high net worth divorce
Divorce is a stressful and emotionally charged event for any couple, but in a high net worth divorce, there are significant personal and business assets involved that can create additional challenges. You and your spouse both want what you feel you are entitled to and need to maintain your current lifestyle, and if you can’t see eye to eye on everything, things can get both acrimonious and complicated. If this applies to your divorce actions, here are some important factors to consider.
Identify separate and marital property
The first thing you need to do is inventory all assets and identify which ones you and your spouse acquired as a couple and which are either assets you owned before the marriage or were provided to you as gifts or inheritances. For separate property, provide documentation that supports your claim, such as receipts, bills of sale, or written confirmation from gift-givers. For some property, the distinction is unclear, and contributions to a potential marital asset will need to be traced.
Have your assets valued by experts
In order to enable a fair settlement that your spouse will find difficult to challenge, marital property must be accurately valued. Hire experts to carry out a detailed assessment of everything you owned and developed as a couple, such as a business, professional practice, real estate, investment portfolios, retirement accounts, and related assets.
Take tax consequences into account
Taxes are a major consideration in any divorce action, but when high incomes are involved, their impact is even more significant. All assets, child support, and spousal maintenance payments you receive are taxable, and if the sums are high, so are the taxes. A financial advisor can advise you on how to structure child and spousal support in a way that presents a tax advantage to both sides, and retirement benefits may be awarded in an arrangement that minimizes tax liability.
Refrain from (and watch for) suspicious asset transfers
When faced with the possibility of losing a lot of money, it can be tempting to conceal or transfer assets to prevent them from being divided in a divorce. Don’t do it. Any attempt to hide money or property will be regarded as fraud and lead to both penalties and loss of credibility with the court. Conversely, if you believe your spouse might hide assets, review all bank, credit card, and investment statements for suspicious transfers and investigate any anomalies.
When you are experiencing a high net worth divorce, finding the right New York divorce attorney to protect your interests is crucial. These separations typically involve issues and complications that ordinary divorces do not, and having an attorney who is experienced in handling them is an important part of protecting your rights and getting the settlement you deserve. If you are considering divorce or if you have been served with divorce papers, then contact Eskin & Eskin, P.C. One of our experienced attorneys will be available for a free consultation. Call 718-402-5204 or visit www.EskinAndEskinLaw.com to learn more.
