The Unique Challenges of a High Net Worth Divorce in New York

Although every divorce is unique, divorces with similar characteristics follow similar patterns and face similar challenges. For example, couples without children can divorce easier because they do not share parenting responsibilities, child support, or parenting time. A high-net-worth divorce encounters unique challenges primarily identifying, valuing, and distributing the assets.

A high-net-worth divorce is a divorce involving more than one million dollars in net liquid assets. Under New York law, a high-net-worth divorce involves a four-step process that entails:

• Identifying all the assets
• Categorizing the assets, i.e., separate, marital, or a combination of both marital and separate
• Valuing the marital components of the assets
• Distribute marital assets equally while considering the ‘tax impacting’ concept

High-net-worth individuals need to hire an experienced Manhattan divorce attorney to reduce associated risks and ensure the assets are distributed fully and fairly. At WertheimerLipton, we pride ourselves on handling complex financial issues in a divorce. With the help of our team of family law attorneys, we assist high asset clients in seeking the best solution to their unique circumstances.

Why High Net Worth Divorces are Different

High net worth divorces are complex and different for numerous reasons. The property division process is complex and time-consuming, which can lead to a complication during the divorce process. Here are some of the factors considered in a high net worth divorce:

• Inheritance
• Retirement savings and pensions
• High asset 401(k) accounts
• Business assets
• Alimony
• Real estate holdings
• Brokerage accounts
• Unique assets, for example, art and jewelry
• Child support
• Intellectual property
• High value/expensive items like planes, yachts, vehicles, boats, etc

If you are going through a divorce involving high assets, you need an experienced Manhattan divorce attorney. A highly experienced divorce attorney can help you get the best possible outcome for you and your future family.

Why You Should Trust A Divorce Lawyer With Your Assets 

Working with a high-net-worth divorce lawyer is highly recommended because they can help you understand your rights and obligations. In some high-net-worth divorce cases, individuals lose high-value assets through unnecessary and irresponsible litigation and legal fees. Manhattan divorce attorneys at WertheimerLipton take their time to research and give your case personalized attention to protect your assets and ensure a fair division of the assets.

With a valid prenuptial agreement, high net worth couples can save time and simplify the division of assets. However, in some cases, a prenuptial agreement can be considered invalid due to unconscionability, coercion, or fraud. Therefore, if you possess high-value assets, talk to your divorce attorney to determine how best you can approach your divorce case.

How to Prepare for a High Net Worth Divorce

Factors like market fluctuations and tax burdens can affect a couple’s assets when preparing for a divorce. High-asset divorce requires careful planning and counsel from a reputable family law attorney with vast experience handling complex high-net-worth divorces. To avoid confusion, time wastage, or unfair distribution of the assets, you should consider preparing yourself by:

• Create a list of your assets

Divorce is stressful, and it can take a toll on you, even if you are emotionally and financially stable. One thing that is a tremendous help during your divorce process is starting a list of all of the assets that are in your possession. The list is crucial because it helps you determine your total net worth, the assets you wish to keep, and those you can comfortably share with your spouse. If you have a concrete list of all your assets, you can easily discuss divorce possibilities with your attorney depending on the nature of your case.

• Hire professionals

A high asset divorce is complicated, and you need all the help you can get. For example, consult the appropriate financial professionals if your asset portfolio contains real estate, bonds, pensions, stocks, businesses, or any other type of investment. When assets are assessed and evaluated by credible professionals, they reduce the possibility of a dispute.

Hiring and consulting appropriate professionals is crucial to the divorce process. While a divorce attorney comes in handy in handling divorce proceedings, an accountant will inform you about any tax implications you may incur from the settlement. Always talk to your attorney before including additional professionals in the divorce process. Also, your attorney can help you find reliable financial professionals who can give you the best financial advice.

• Educate yourself

If you are in a struggling high-asset marriage, you need to act fast. Seek advice from an experienced divorce lawyer to understand the entire divorce process, the different marriage aspects to be examined, and the implications to your assets. Educating yourself and seeking professional help makes you feel at ease and puts you in the best position if your marriage heads for divorce.

• Do not hide assets

When a marriage is headed for divorce, some spouses are tempted to hide assets by transferring them to third parties. While this might seem like a good idea, the consequences can be severe. If your spouse or court discovers you falsely reported your assets, you lose credibility, and the settlement may favor your spouse.

Hiding marital assets can be attempted by transferring assets to friends or relatives, cash purchases, or delaying raises or bonuses until after a divorce. Always present all your assets for fair assessment and evaluation by the court to avoid possible repercussions.

Contact a New York Divorce Attorney Today

At WertheimerLipton, we are fully committed to helping clients through their divorce processes. If you are contemplating a high-net-worth divorce, work with an experienced attorney handling similar cases to ensure that your assets are properly divided and your interests are protected. Contact us today to schedule your initial consultation with one of our Manhattan divorce attorneys.