Somerville High-Asset Divorce Lawyers
The divorce process can be stressful and time-consuming, regardless of the circumstances. However, there are specific concerns that couples with a high net worth need to address, such as those who earn a more modest living will not have to consider, including tax concerns, inheritances, and identifying which assets are subject to the equitable distribution of property. Ultimately, a high-asset divorce is much more complicated and time-consuming than a typical divorce, so it is highly recommended that you contact a reputable high-asset divorce lawyer.
What Is a High-Asset Divorce?
A high-asset divorce involves a couple who has accumulated $1 million or more in liquid assets, which can include stock and stock options, equity compensation, business or professional practices, IRAs, profit sharing, and other retirement assets, real estate properties, and other items of significant value. A high-asset divorce can be an extremely complex and time-consuming process, particularly if one spouse has significantly higher financial standing than the other or complicated financial investments need to be distributed. One of the most important steps is identifying all assets and determining whether they are separate or marital property.
What Is the Difference Between Marital Property and Separate Property?
During a high-asset divorce, a substantial amount of money, property, and other items of extreme value will need to be divided based on whether it is considered marital or separate property. For example, any assets that each spouse brought into the marriage or inherited during the marriage are considered separate property, which is not subject to the equitable division of property. Assets and property accumulated during the marriage are considered marital property. However, in some cases, separate property can become marital property, which will be subject to division. The following are examples of circumstances where separate property can become marital property:
If one spouse receives an inheritance, it is considered separate property. However, if the money is deposited into a joint savings account or investment account, or is used to pay for home renovations or other marital lifestyle-related expenses, it may be considered marital property.
If one spouse owned a home prior to getting married, the house is considered separate property. However, if the title is changed so that both names are listed as the owners, a portion of the home may be considered marital property.
If only one spouse’s name remains on the title, the value that the home accumulates over the course of the marriage will be subject to the equitable distribution of property.
How Do High-Asset Divorces Differ From Typical Divorces?
When there is a substantial amount of wealth and property involved, a high-asset divorce differs from a typical divorce in the following ways:
- A high-asset divorce is significantly more expensive due to the assets and financial interests at stake. In addition, the costs associated with legal fees, forensic accountants, and other experts can accumulate very quickly.
- High-asset divorces also tend to be much more time-consuming. Locating all of the assets, calculating their value, and negotiating a mutually agreeable settlement can be a time-consuming process. This is particularly true if the couple owns multiple real estate properties, investments, and businesses.
- Financial transparency is particularly important in a high-asset divorce due to the substantial wealth involved. Hiding assets is more common in high-asset divorces, which can have significant legal consequences.
- Spousal support is a consideration in all divorces, although calculating it in a high-asset divorce is a more complicated process that involves a detailed assessment of both parties’ financial circumstances and standard of living during the marriage. When calculating spousal support, both parties will want to maintain the luxurious lifestyle that they have become accustomed to, so the support payments will be substantial.
- Significant tax consequences are likely in a high-asset divorce. The distribution of marital property during a divorce can trigger significant tax liabilities or benefits.
- Private mediation is often utilized in high-asset divorces to protect the couple’s privacy and the extent of their assets. When a divorce is handled in court, it becomes a public record, which means that information about the couple’s finances and the settlement details may become public.
- High-asset divorces are often resolved through litigation. While some couples may be able to resolve their issues through mediation, most high-asset divorces involve litigation, particularly when there are ongoing disputes about the distribution of property, spousal support, and a suspicion of hidden assets.
How Is Spousal Support Determined in a High-Asset Divorce?
Spousal support is one of the main issues that can cause high-asset divorce to become contentious. Depending on the support agreement, the divorce can significantly impact one or both parties’ standard of living. The court will consider the following factors when determining the amount of support payments and how long the support payment should continue:
- Each spouse’s current income
- Standard of living during the marriage
- Earning ability of both spouses after the divorce
- Current health status of both spouses
- Each spouse’s contribution to the marriage
- Both spouses’ assets and liabilities
- Length of the marriage
- Tax consequences of spousal support for each spouse
What if My Spouse Attempts to Hide Assets During a High-Net-Worth Divorce?
During the divorce process, both spouses are required to disclose all assets. It is not uncommon for a spouse to try to hide assets, particularly in high-asset divorces where a significant amount of money and property must be divided. Often, the spouse who entered the marriage with a significantly higher financial standing is more likely to try to hide assets so that they are not subject to the equitable division of property. There are several ways that a spouse may try to hide assets during a divorce.
How Are Hidden Assets Discovered?
Even if one spouse is intent on hiding assets during a divorce, there are proactive steps that can be taken to prevent this from happening. For example, during the discovery period, you and your Somerville high-asset divorce lawyer can ask questions and request that your spouse provide certain financial documents and other evidence to help provide an accurate picture of your shared assets. Tax documents, loan documents, pay stubs, and bank statements are just a few examples of documents that can be requested. If you are concerned that your spouse will try to hide assets, you may consider hiring a forensic accountant to analyze financial records, identify all assets and liabilities, and provide expert testimony about the steps your spouse may have taken to hide assets.
The Somerville High-Asset Divorce Lawyers at Lyons & Associates, P.C. Handle High-Net-Worth Divorces
If you and your spouse are filing for divorce and have concerns about your significant assets, contact the Somerville high-asset divorce lawyers at Lyons & Associates, P.C. We understand the unique challenges associated with a high-asset divorce, including property division, spousal support, and the potential tax implications. To schedule a free, confidential consultation, call us today at 908-575-9777 or contact us online. Our offices are located in Somerville, Morristown, and Freehold, New Jersey, where we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.