If you are getting a divorce, you are most likely worried about what will happen with your hard-earned assets. Unfortunately, when couples cannot agree upon the terms of their divorce, they very often enter the litigation process, thus opening their assets up to equitable distribution. To make matters even more complicated, if you or your spouse is a high net worth individual, you will have additional assets to worry about. Though this is an emotional time in your life, you must bear down, hire an attorney, and read on to learn more about your legal options going forward. A bit of self-education and an experienced attorney on your side can go a long way. Here are some of the questions you may have:
What is a high net worth divorce?
Essentially, if you or your spouse has $1 million or more in assets, your divorce is classified as a high net worth divorce. High net worth divorces are often far more involved and can take far longer to resolve than standard divorce cases, so you must ensure you hire a knowledgeable and skilled attorney who you can trust to fight the upward battle for you.
What assets may be affected by a high net worth divorce?
Some of the assets that make come into question in a high net worth divorce are as follows:
- Shared businesses, partnerships, or business investments may all be considered marital property and will, therefore, most likely be impacted by your divorce
- International or out-of-state assets usually come with tax consequences, which may be affected by a divorce
- Pensions & benefits, 401(k)’s, retirement accounts are generally subject to equitable distribution
- Real estate or property holdings, such as your home, vacation homes, timeshares, and more may come into question in a high net worth divorce
How can I protect my assets from a high net worth divorce?
To protect your assets, you may draft a prenuptial agreement with your spouse-to-be before marriage. However, you may also draft a postnuptial agreement, which essentially serves the same purpose as a prenuptial agreement, though it is drafted after marriage. If you and your spouse jointly own a business, you can draft a shareholder agreement to solidify what will happen with your business, should you get a divorce
Contact our experienced New Jersey firm
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. We understand how serious and potentially impactful divorce and family issues can be, which is why we dedicate ourselves to providing our clients with compassionate and knowledgeable legal advice and action. If you need quality legal services, please do not hesitate to contact the firm for a consultation.