Divorce has a significant emotional impact on our lives, regardless of our financial situation. However, if you are a high net worth individual, your divorce may have more financial repercussions than you think. This is why it is crucial you hire an experienced attorney who knows the ins and outs of the high net worth divorce process. If you are a business owner or otherwise, you need an attorney who understands what is at stake. Here are some questions you may have regarding the high net worth divorce process:
What are the qualifications for a high net worth divorce?
If you or your spouse have assets worth one million dollars or more, you will qualify for a high net worth divorce. While all divorces are stressful, high net worth individuals generally have to endure a far more financially intensive process. If your divorce goes to court, you are most likely required to submit the following documents regarding your financial situation:
- Professional licenses
- IRAs
- Restricted stock
- Real estate holdings, including multiple properties
- Defined benefit pension plans
- 401(k)s
- Bonuses that do not vest immediately
- Offshore assets
- Business ownership, including partnerships and limited liability companies/corporations
- Involved tax structures and planning
- Widespread investments: stocks, bonds, and investment properties
The courts will require you submit the information mentioned above on top of the standard documents you must submit when filing for a divorce, such as bank statements, W-2’s and pay stubs to get a well-rounded financial picture of your marriage. If you lie or are incorrect in any of your claims, the court is obligated to share this information with the IRS, so you must be honest and meticulous when submitting this information.
Can I protect myself from financial hardship in a high net worth divorce?
Filing a prenuptial agreement will most likely protect your assets. There is an unfair stigma attached to requesting prenuptial agreements, but the truth is, if you are a high net worth individual, you must protect your assets. Requesting a prenuptial agreement has nothing to do with the confidence you have in the durability of your marriage. If you have not signed a prenuptial agreement, you may still draft a postnuptial agreement with your spouse. While this may sound like an uncomfortable conversation, it is always better than losing your hard-earned assets in the event of a divorce.
Contact our New York firm
The Law Office of Peter L. Jameson, PLLC is an experienced divorce and family law firm located in New City, NY. It is essential to retain effective legal guidance during such pivotal times in life. Contact our firm today to discuss your legal matter and get the quality legal representation you deserve.
