It is always a difficult and emotionally taxing experience when a marriage doesn’t work out. While the emotional stress of it all may seem like more than enough, the financial aspect of the marriage also comes into question and may leave both parties scratching their heads. Unfortunately, this situation is made even more complicated if one or both spouses are high net worth individuals.
What is a high net worth individual, and what constitutes a high net worth divorce?
A high net worth individual is someone who has assets worth one million dollars or more. If this is the case for you, your spouse, or both, then you would qualify for a high net worth divorce. Essentially, these divorces are quite similar to all other divorces–they both involve spousal support, child custody, child support and division of assets. Unfortunately, high net divorces are inherently more complex, as there are far more assets that come into question. High net divorces tend to involve dividing multiple properties, high-profile possessions, successful businesses, and professional practices. When you file for a high net worth divorce, the courts will request both parties provide financial information, such as net worth statements and tax returns.
Why do the courts want your financial information?
In order to accurately determine how to divvy up your assets, the courts need to have a well-rounded picture of how your marriage functions financially. In order to do so, they must take a look at your financial information first. It is very important that they do not see any discrepancies, as New Jersey courts are legally obligated to report them to the Internal Revenue Service, which could potentially land you in big trouble.
Can you protect yourself from losing out in a high net worth divorce?
If you are a high net worth individual, you may wish to draft a prenuptial agreement. A prenuptial agreement is a settled structure that determines what should happen to your finances and property if your marriage were to fail. If you are already married, while it may be an uncomfortable conversation with your spouse, it may be worth it for a high net worth individual to request a postnuptial agreement. This basically serves the same function as a prenuptial agreement, except it is drafted after you are already married.
Contact an experienced high-profile New Jersey divorce attorney
If you are considering getting a divorce and are a high net worth individual, it is crucial you hire a knowledgeable attorney. We understand that as a high net worth individual, a lot is on the line. Not only may your finances be in jeopardy, but your businesses and properties may be as well. Do not hesitate to get in touch with an attorney who will fight tooth-and-nail for your hard-earned assets.
Paris P. Eliades Law Firm, LLC is honored to serve the people of New Jersey, including Sparta, Sussex County, Morris County, Passaic County, and Bergen County with the quality legal services they deserve. Contact our firm for a consultation today.