Legal Considerations When Pushing for High Net Worth Divorce
The fact is, the more income you make, the more is at stake when you are facing a divorce. Unless a prenuptial agreement is agreed upon before marriage, 50 percent of everything that you have may go to your spouse.
So what exactly is a high-income divorce? It usually involves anyone possessing liquid assets with at least a million dollars or more.
If you have a high net worth and are involved in a divorce, here are some important legal considerations.
Hire a Valuation Specialist
Your company or business can also be a subject of division among spouses, beginning the moment you consider divorce. Think about it… all the stress and hard work you’ve put into your business all these years. Never negotiate a settlement before consulting a valuation specialist to determine the actual value of your business, property, and assets.
Look Through Your Postnuptial and Prenuptial Agreement
Be sure you have a well-drafted prenuptial agreement, because if there is something you failed to mention or somehow omitted, then with these terms, your prenuptial agreement has the possibility of being invalidated.
If your spouse needs financial support and you’re the one generating more income between the two of you, then you might end up with an alimony obligation. Therefore, at this point, you need to negotiate an alimony agreement that can be financially favorable on your end.
Consider Hiring a Forensic Accountant
In some cases, it’s quite tempting for a spouse to hide certain assets from their partner by something as simply as moving money or other funds into another account. A forensic accountant is crucial in moments like these, in which you want to track certain movements of your assets or funds. We know how it is difficult sharing the same assets and funds as a couple, because it makes it more difficult to pinpoint the exact source.
Accounting for Assets and Liabilities
In a high net worth divorce, properly accounting for your assets and liabilities is vital. It might be quite a tedious and daunting task, but you need to go through every minute detail. You don’t want to end up being responsible for your partner’s previous liabilities or giving away assets that you should have kept.
Whether you like it or not, when transferring assets you can face several tax consequences, especially for individuals with high net worth.
Calculate the Costs
You can be spending tens of thousands of dollars fighting over a dispute, or you can reach a point where you can set your differences aside and consider a settlement, possibly saving you money in the long run.
Undergoing a high net worth divorce is never easy. However, you have to come to terms with the face that the overall outcome of the case will deeply affect your future. Not only do you have to undergo the stress of experiencing a divorce, but you also have other important things to consider, such as child support, tax consequences, housing costs, and your own financial situation. Click here to contact an expert high net worth divorce attorney who thoroughly understands your unique position and can help you through these critical decisions and guide you throughout the entire process.