Freehold High-Asset Divorce Lawyers

A high-asset divorce can be much more complicated than a traditional divorce due to the vast and complex assets that are involved. In addition, depending on the circumstances, a high-asset divorce can quickly become contentious due to the property and substantial wealth that is at stake.

Like a traditional divorce, a high-asset divorce will require you and your spouse to resolve custody, child support, spousal support issues, and the division of property. A highly skilled legal team who understands the unique challenges associated with a high-asset divorce will effectively negotiate the best possible settlement outcome.

If you are going through a divorce that involves substantial property and assets, contact a Freehold high-asset divorce lawyer as soon as possible.

What Is Considered a High-Asset Divorce?

If a couple is going through a high-asset divorce, it generally means that one or both spouses have over $1 million in liquid assets. The spouses’ net worth can come from a range of sources, including but not limited to the following:

  • Real Estate Holdings: These can include the couple’s primary residence, vacation homes, rental properties, commercial real estate, and land investments.
  • Business Interests: If the couple has ownership stakes in business, partnerships, or professional practices, this will be subject to the equitable distribution of marital property.
  • Investment Portfolios: It is common for wealthy couples to have a substantial amount of money invested in stocks, bonds, mutual funds, hedge funds, and other complex investments that can make the divorce process significantly more complicated.
  • Retirement Accounts and Pension Plans: This can include a significant amount of savings accumulated in a 401(k) plan, IRAs, pensions, and deferred compensation, all of which are subject to the equitable distribution of property in a high-asset divorce.
  • Luxury Assets and Other Items of Value: This may include valuable art collections, luxury vehicles like cars, boats, and planes and other assets that must be appraised and divided in divorce proceedings.
  • Intellectual Property: Wealthy couples often own royalties, patents, copyrights, and trademarks that have extremely high monetary value and are subject to division in a high-asset divorce.

What Makes a High-Asset Divorce Different?

Due to the substantial wealth at stake, there are aspects of a high-net-worth divorce that can make the process significantly more challenging and potentially contentious. The following are characteristics of high-asset divorces that set them apart from a regular divorce:

  • Complex Division of Assets: Traditional divorces involve dividing the marital home, vehicles, and savings accounts. In high-asset divorces, the assets are much more complex and vaster and can include investments, real estate holdings, offshore accounts, and other complicated assets that must be identified, evaluated, and distributed equitably. The process requires legal and financial experts.
  • Financial Disclosure and Transparency: It is not uncommon for spouses to try to hide assets or attempt to undervalue their worth when navigating a high-asset divorce. This is particularly common if one spouse comes into the marriage with significantly more wealth. However, there are serious consequences to hiding assets, including jail time.  
  • Prenuptial Agreements: While any couple can enter into a prenuptial agreement, it is far more common among couples with substantial property and assets. A prenuptial agreement addresses a range of issues, including both spouses’ rights to joint and separate property, how the division of property will be handled in the event of a divorce, whether spousal support will be necessary, and details regarding a will or trust.
  • Spousal Support and Lifestyle Maintenance: Despite the marriage not working out, both spouses will likely want to maintain their luxurious lifestyle, which will require significant financial support. Calculating spousal support in a high-asset divorce requires a detailed assessment of both parties’ finances, earning capacity, and living standard over the marriage.
  • Business Valuation and Asset Protection: Determining the value of a business is a complicated process, particularly when one or both spouses own a business and have significant financial investments. Steps have been taken by one or both spouses to protect their assets and safeguard their wealth. However, this is a critical step in ensuring that the assets are distributed equitably and fairly in a high-asset divorce. 
  • Litigation and Resolution Methods: In most cases, divorces are resolved through negotiation or mediation. However, high-asset divorces are more likely to proceed to litigation, particularly when disputes arise over issues like spousal support and asset division.

What Strategies are Recommended During a High-Asset Divorce?

In order to secure the best possible settlement outcome in a high-asset divorce, it is highly recommended that you keep the following effective strategies in mind:

  • Provide detailed, accurate financial documents, including pay stubs, tax returns, bank statements, investment portfolios, and property deeds. Your high-asset divorce lawyer can assist you with this process and take proactive steps to ensure your spouse is not hiding assets.
  • Make sure that your high-asset divorce lawyer works with a range of financial experts, including forensic accountants, business valuation specialists, tax advisors, and wealth managers, who can provide the expertise needed to support your case, recover hidden income, and recommend strategies for preserving your wealth.
  • Consider an alternate dispute resolution method like mediation or a collaborative divorce. While this may not be an option if your divorce has become particularly complex or contentious, it can minimize conflict and avoid a costly and time-consuming court battle.
  • Take steps to protect your financial future. Your high-asset divorce lawyer can help you develop a post-divorce financial plan that reflects your goals and helps you maintain the lifestyle to which you have become accustomed.

What Are Common Mistakes to Avoid During a High-Asset Divorce?

When navigating a complex, high-net-worth divorce, even a minor mistake or oversight can have significant financial implications. The following are examples of common mistakes that can increase conflict, jeopardize your financial interests, and make the divorce process more time-consuming and expensive:

  • Attempting to hide assets. Concealing assets erodes trust, complicates divorce negotiations, and can result in severe legal consequences. The equitable division of property requires full transparency.
  • Making impulsive decisions. While emotions often run high during a high-asset divorce when there is a significant amount of money on the line, do not make impulsive financial decisions. Doing so can have negative consequences that can impact your financial future. Your high-asset divorce lawyer will prevent you from hastily liquidating assets, depleting joint accounts, and entering into questionable financial agreements.
  • Engaging in unnecessary legal battles. Do not engage in unnecessary legal battles out of spite. Alternative dispute resolution methods like mediation and arbitration can save you a great deal of time and money.
  • Failing to consider tax implications. There are often significant tax implications involved in high-asset divorces.  If you do not take the necessary steps to consider the tax implications of asset division and spousal support, you could face significant tax liabilities. You can minimize these liabilities by consulting with a tax advisor or accountant.
  • Neglecting to plan for your financial future. A failure to review and revise your estate planning documents, beneficiary designations, insurance policies, and retirement accounts can jeopardize your long-term financial security. Your high-asset divorce lawyer can assist you with this process, protect your financial interests, and ensure a successful financial future.

The Freehold High-Asset Divorce Lawyers at Lyons & Associates, P.C. Represent Clients in High-Net-Worth Divorce Cases

If you and your spouse are going through a high-net-worth divorce, contact the Freehold high-asset divorce lawyers at Lyons & Associates, P.C. as soon as possible. To schedule a free consultation, call us today at 908-575-9777 or complete our online form. Located in Somerville, Morristown, and Freehold, New Jersey, we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.