Going through a divorce is generally a complex and emotionally exhausting time in a person’s life. It requires separating two lives that were brought together over a period of time. A large part of this separation includes the division of the couple’s assets between the two of them. While this is difficult during any divorce, it can be even more so if the spouses are of high net worth. When going through a high net worth divorce, it is important for both spouses to protect their assets. Those facing these situations can benefit from retaining the services of a skilled attorney to represent their best interests.
What is a High Net Worth?
Spouses who have assets that are worth one million dollars or more can qualify as being of high net worth. If the couple decides to divorce, it is a high net worth divorce. Generally, these proceedings are similar to other divorce cases, as they handle the same marital issues. However, high net worth divorces can become more complicated due to the fact that they involve assets such as the following:
- 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 high net worth divorces are contested, both spouses are required to provide proof of their finances. This can include documentation such as tax returns and net worth statements. With this information, the court is able to get the full picture of each spouse’s financial standing. The judge can then evaluate what each spouse is worth and how the assets can be accurately divided between them. It is important to know that this information is also shared with the Internal Revenue Service (IRS). It is because of this that both spouses must be truthful in sharing their information to ensure there are no discrepancies within their financial claims.
How Can You Protect Yourself?
Spouses of high net worth should know that they are able to protect themselves from facing difficult financial situations during a divorce. This can be done with the creation of a prenuptial agreement. This is a document that outlines how a couple’s assets will be divided in the event of a divorce. A prenuptial agreement must be signed before a marriage is official in order for it to be valid. However, a postnuptial agreement can be signed during a marriage to accomplish the same goals.
Contact our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.