Going through a divorce is a stressful time, emotionally and financially. The process can be even more difficult if both spouses are of high net worth. In this situation, spouses must make sure they have the right attorney to handle their case and defend their best interests.
What is a High Net Worth?
If two spouses have assets that are worth one million dollars or more, they can qualify as a high net worth divorce. These divorce situations are similar to other divorce proceedings. The main concerns throughout the process are settling marital assets such as child custody, child support, spousal support, and the division of assets. However, high net worth divorce proceedings can become more complicated because they generally involve assets such as:
- Intricate retirement and deferred income structures
- Business ownership, including partnerships, and limited liability companies/corporations
- Tax structures and planning
- Real estate holdings
- Widespread investments
Do I Have to Provide Financial Information?
When these divorces are contested, both spouses are required to provide proof of finances, such as tax returns and net worth statements. This allows courts to have a full understanding of how the marriage’s finances. With this, courts can see how much each spouse is worth so that they can accurately divide their assets between the two of them. This also ensures that courts do not find any discrepancies within their financial claims, as the information is also shared with the Internal Revenue Service (IRS). This makes sure couples are truthful in doing so.
How Can You Protect Yourself?
The best way a spouse can protect themselves from a difficult financial situation during a divorce is a prenuptial agreement. This is decided upon before getting married. By signing a prenuptial agreement, couples predetermine what will happen to their assets in the event that their marriage does not work out. In addition to this, spouses are able to get a postnuptial agreement. This achieves the same goals as a prenuptial agreement, only it is determined after the marriage is validated.
Contact our Firm
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.