How Are Assets Divided In A High Net Worth Divorce?

Divorce is never simple, and it can become even more complex if one or both spouses have significant financial means and have commingled their investments, funds, and other even business and real estate assets. 

New York high net worth divorce attorneys like WertheimerLipton specialize in helping divorcing couples through the complexities of divorce and distribute and divide assets equitably. Let’s discuss a few of the factors that may affect how assets are divided during a high net worth divorce in New York.

Asset Valuation

In all divorces, assets acquired during the marriage are considered to be property of both spouses. This can include household belongings, vehicles and boats, bank accounts, property like houses, vacation homes, and other types of real estate, investment accounts, retirement accounts, and all other types of assets.

However, asset valuation can be difficult in high net worth individuals, who may own businesses, complex financial securities, and other assets that may be difficult to divide equitably. Specialized appraisers and accountants may be required to help with this process. 

Spousal Maintenance

Spousal maintenance is very common in marriages where one person is a high earner, and the other is not. If one spouse is a high net worth individual and the other is not, they are very likely to need to pay spousal maintenance (alimony) to the other spouse.

Lifestyle is taken into account in this process, among many other factors. So in situations where both spouses were living expensive lifestyles before their divorce and separation, spousal maintenance payments can be significant. 

Prenuptial And Postnuptial Agreements 

High net worth couples often have prenuptial or postnuptial agreements in force to simplify the process of splitting up assets if the couple divorces. These will be taken into account during divorce proceedings.  

Classification Of Marital Property 

New York is an “equitable distribution” state. This means that all marital property (excluding separate property) will be subject to “fair division” between the spouses.

However, this does not necessarily mean the assets will be split equally. The court will take many different factors into account to determine what’s “fair,” including the income of each spouse, length of the marriage, and other such factors.

High net worth individuals often have a more difficult time with this process, because if both individuals have extensive commingled their assets during marriage, it can be difficult to determine what assets are separate, and which assets are marital property. 

Tax Implications

Certain actions taken during divorce proceedings can have significant tax implications. For example, if a high net worth couple sells a business to distribute the asset equally, they may be required to pay taxes on the proceedings. Experienced New York high net worth divorce attorneys can help each spouse understand the tax implications of their divorce agreement. 

Need A Divorce Attorney In New York? Contact WertheimerLipton Today!

Dividing assets equitably is a complex proposition, particularly for people who have a high net worth and a large portfolio of valuable business, financial, and personal assets.

We are a team of experienced divorce attorneys in New York, and can work with high net worth couples to come to an equitable and fair agreement for the distribution of assets. To learn more and get the assistance you need, contact us for a consultation.