High Net Worth Divorce In New York: What To Know

Divorce matters can be complicated and stressful, especially if one or both partners hold high-value assets. If you are seeking a high net worth divorce in New York, it is essential to know how the process is handled in the New York court system. The best place to start is to contact a high asset divorce attorney to discuss the specifics of your case and learn your options.

Divorce lawyers at WertheimerLipton have the skills and experience to provide proper legal representation to all clients. You can contact the law firm anytime if you need legal help in Brooklyn or Manhattan.

What Is a High Net Worth Divorce?

A high net worth divorce is a divorce in which assets owned by either spouse have a high monetary value. If you or your partner owns property worth $1 million and above, for example, your divorce could be considered a high-asset divorce.

Why are high net worth divorces different from other divorces? There may be significant investment accounts, multiple homes, business interests, and valuable personal property involved. Moreover, spouses of high net worth individuals often require spousal support payments to maintain their current standard of living. In addition, child support obligations may also be affected by the income of one or both spouses.

If you or your spouse have significant assets and are considered high net worth individuals, it is important to work with attorneys who have experience assisting other clients like you through the divorce process. WertheimerLipton has the experience you need.

What Assets Are Affected in a High Net Worth Divorce?

The issues handled in a high net worth divorce are similar to all other divorces. These issues include child custody, child support, spousal support, and property distribution. However, there are other factors that are usually considered in high net worth divorces. This could include:

• Shared business interests
• Retirement accounts
• Real estate and property holdings
• Bonds & Stocks
• Pensions
• Business investments
• 401(K) Benefits

Because of the extensive nature of the assets involved, high net worth divorce cases can be complex. Sometimes, these cases can require certified public accountants, private investigators, forensic accountants, financial analysts, and other professionals to be involved in the divorce procedure if there are discrepancies. Having a solid legal team is invaluable as they can help you navigate the divorce process and address any complicated matters that may arise.

Property Division in a High Net Worth Divorce

In New York, property distribution in high net worth divorces follows the “equitable distribution” rule. This means that marital assets are split and shared fairly among couples. But this does not mean the property is divided equally. The court considers what each spouse contributed to the marriage and the needs of each partner following a divorce.

Having one partner’s name on the title of the marital property does not mean the person has sole rights to that property. Marital property, in this case, is property brought into the marriage or obtained during the marriage. A couple can also have separate property – property obtained before marriage, acquired by bequest or received as a gift.

When distributing property in a high net worth divorce, the judge will consider factors highlighted in Domestic Relations Statute 236(B)(5)(d), which include:

• Duration of the marriage
• Contribution of each party to the acquisition of marital property
• Income and property of each spouse at the time of marriage
• Health and age
• Potential loss of medical insurance benefits upon divorce
• Tax implications to each party
• The need for a custodial parent to own the marital home and use its effects
• Loss of pension and inheritance rights due to the divorce

How to Protect Your Assets in the Event of a High Net Worth Divorce

Wealthy individuals are generally vulnerable during separation or divorce. The best way to preserve your hard-earned assets is by preparing a prenuptial agreement. This is a legal document drafted and signed before spouses get married.

The prenuptial agreement spells out what assets belong to which spouse and outlines specific terms to be followed in the event of a divorce. Even if you are already married, you can still create a postnuptial agreement to serve the same purpose of safeguarding some assets in a potential divorce. 

Although it is surrounded by negative stigma, creating a prenuptial agreement does not in any way suggest that you will end up in a divorce. Rather, it sets clear expectations to avoid costly litigation should your marriage end in divorce. This document can lay out the division of property, child support, child custody, and other key issues in high net worth divorce. For example, the New York courts will normally follow the guidelines of a prenuptial or postnuptial agreement to make important decisions.

How to Handle a High Net Worth Divorce

High net worth divorces form part of the most stressful cases in family law, mainly because they involve a high volume of valued assets. Navigating this process often requires proper planning along with substantial counsel. Consider the following tips:

• Educate Yourself on High Net Worth Divorce Matters

If you’re dealing with a high net worth divorce, consult an experienced divorce attorney for advice and guidance. Doing this early enough can help you understand the divorce process and the critical marital aspects that will be evaluated as well as the implications on your property.

• Do Not Hide Property

If you are divorcing, do not attempt to hide property by transferring it to other parties, this might make things worse. Remember that if the court discovers that you have under-reported your assets, your credibility will be at stake, and the settlement will automatically favor your ex-spouse. Just present your assets fairly and let the court make the decision.

• Follow the Court’s Instructions

In New York, court orders are the final decisions in all divorce matters, and you should not defy these orders. For example, if the court orders you to pay child support, spousal support, or alimony, you should do it without fail to avoid potential consequences.

Need Help? Contact a Manhattan Divorce Attorney Today

If you are considering a divorce or have been served with divorce papers, we can help. Contact us online or call us at (845) 379-4090 to schedule an appointment and get the legal representation you need for your high net worth divorce process.