When divorces proceed, many issues need to be resolved before the divorce is made final. These issues can be more complicated and time-consuming when one of the spouses has a high net worth. Since high net worth individuals have acquired more assets and properties, these divorces need to consider all the owned possessions. While many of the same topics can be involved in the divorce, there may be numerous factors contributing to the complexity of these kinds of divorces. With this process, you should seek the help of our professional attorneys to provide you with the legal counsel you need.
How does equitable distribution play a role?
The state of New Jersey practices equitable distribution for assets involved in marriages. With this concept in mind, judges split the marital assets between the spouses to ensure a fair allocation. However, this does not mean the distribution will be equal. The final decision on the distribution is made by a judge after the consideration of many factors. Equitable distribution is a concept used to provide a fair and just division of assets, not an equal division.
Why is a high net worth divorce different?
High net worth divorces are not necessarily different than other divorces, they just require some more time with the division of marital assets and the consideration of all properties. Since high net worth individuals often possess more assets, the division of these can be more time-consuming during the divorce process. These divorces may be impacted by prenuptial agreements, 401(k) plans, defined benefit pension plans, IRAs, restricted stock or stock options, business ownership, professional licenses, involved tax structures and planning, offshore assets, bonuses that do not vest immediately, real estate holdings and widespread investments.
What do judges consider when deciding how to distribute assets?
Judges must use equitable distribution to divide the marital assets between both spouses. When considering factors that affect equitable distribution, they must act in a fair and just manner. These factors include the duration of the marriage, the age of both parties, the health of both parties, the income or property brought to the marriage by each spouse, the established standard of living, any written agreements made before or during the marriage relating to property distribution, economic circumstances of each party, the income and earning capacity of each party and much more.
If you require strong legal representation for matters related to divorce or family law, Haber Silver Simpson & Russoniello is here to help. We proudly represent clients in Morris County and throughout the state of New Jersey. Contact our firm today to schedule a consultation.