After marriages are deemed over, spouses will go their separate ways. Before they do so, they have to have their assets distributed between them. This allows one spouse to gain ownership of an asset or property and retain control of it as a sole owner. During marriages, couples own assets and possessions together. However, this needs to be split when they are involved in the divorce process. In order to go their separate ways, they will need to have their assets and possessions separated at this point. Their assets will be split using equitable distribution. Even though high net worth divorces have more assets to consider, they will still use equitable distribution to get through this process.
What is equitable distribution?
Equitable distribution divides assets in a fair and just manner. This does not mean that assets are split and half and then given to each spouse. Fair is not the same as equal in this case. Factors that affect the spouses and their assets will be considered to determine who gets what after the divorce. These marriages may have multiple properties involved, as well as businesses and other shared holdings that add up to a high net worth. A high net worth is determined to be couples that have a shared value of $1 million.
How can a prenuptial agreement affect this?
Prenuptial agreements are made before marriages occur to divide assets between spouses. They may make these if one of them has a high net worth or a business. In this agreement, they can state what belongs to them individually. This can be useful since some of their assets may already be split. This may be able to make the equitable distribution process simpler. With a prenuptial agreement in place, some assets will already be named to a certain spouse. They can then come into ownership of that asset without having it considered as marital property during the distribution process.
Even if couples do not make a prenuptial agreement, they may have the option to make a postnuptial agreement. This document is the same as a prenuptial agreement. However, a postnuptial agreement is made after the marriage has become official.
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.