What Makes a High Net Worth Divorce Different?

What Makes a High Net Worth Divorce Different?

If you are ready to file for divorce, you are probably wondering the best way to go about the process. It can be overwhelming at times, and if you or your spouse is a high net worth individual, the process may become even more involved. If you are considering getting a high net worth divorce, you must first educate yourself further, and then contact an attorney you can trust. Here are some of the questions you may have:

What constitutes a high net worth divorce?

The main factor in determining whether you qualify for a high net worth divorce is whether you or your spouse have one million dollars or more in assets. A high net worth divorce will usually involve all the things regular divorces entail, but they will also incorporate other factors regarding your wealth. For example, you and your spouse may have multiple properties, businesses, and professional practices. These will all come into question when the courts are deciding the terms of your divorce. The courts will also require both you and your spouse to provide some of the following documentation in order to get a better idea of how your marriage is financially structured:

  • Business ownership, including partnerships and limited liability companies/corporations
  • 401(k)s
  • Restricted stock
  • Prenuptial agreements in place
  • IRAs
  • Professional licenses
  • Bonuses that no not vest immediately
  • Widespread investments, including stocks, bonds, and investment policies
  • Real estate holdings, including multiple properties

This is just some of the additional information you may be required to submit, on top of all the standard documentation regular divorces entail, such as W-2’s, bank statements, and pay stubs. You must ensure all the documents you turn over are truthful and correct, or the courts may share this information with the Internal Revenue Service if any discrepancies are found.

Can I protect myself from the complicated high net divorce process?

If you drafted a prenuptial agreement with your spouse before you were married, you will have protected your hard-earned assets, and would most likely need not go through the complicated litigation process. However, if you have not drafted a prenuptial agreement and are not yet considering a divorce, you may protect your assets by drafting a postnuptial agreement, just in case. A postnuptial agreement functions essentially in the same way as a prenuptial agreement, but it is drafted after the marriage is already official. You may feel uncomfortable suggesting this to your spouse, but it may also save you a headache in the long run.

Contact our New York firm

The Pollack Law Firm, P.C., serving clients in Nassau and Suffolk County, is always available to assist and represent parties in divorce and all other matrimonial and family law matters. Please call today to schedule a free consultation: (516) 938-3330.

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