With divorce proceedings, many issues need to be resolved. These issues can become more complicated when one of the spouses has a high net worth. These divorces include more assets that need to be considered when dividing property between the couple. 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. Since high net worth individuals have a greater number of assets and possible debts that have accrued over time, this can require more time being spent on the division of assets during the divorce process. With this process, you should seek the help of our professional attorneys to provide you with the legal counsel you need.
How is equitable distribution done?
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. The process is very much the same, it just includes more assets when done for a high net worth divorce.
What makes a high net worth divorce different?
Since high net worth individuals often possess more assets, the division of these can become more time-consuming in divorce proceedings. These divorces can 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. With all of these possessions, it can contribute to an individual’s net worth, making it a high one.
Whether you are the high net worth spouse or your spouse is, you should seek legal counsel. As someone with a high net worth, you want to make sure that your rights are protected since you may have to face an investigation into your assets to disclose your final net worth. If you are the opposing party, you should also have someone working on your behalf to provide a fair outcome.
What do judges consider when deciding how to distribute assets?
To split assets according to equitable distribution laws, judges must consider many aspects. 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. Assets that were acquired before the marriage was officiated may not be involved in the equitable distribution process. Assets that are acquired as a gift or inheritance may be deemed separate property and therefore, are not subject to equitable distribution.
The Law Office of Toby Grabelle, LLC is a family and divorce law firm serving Monmouth County and all of New Jersey that would be happy to assist you in legal counsel. If you need quality legal services, contact the firm for a consultation.