When you decide to end your marriage, you will face a difficult legal process where you and your spouse will have to reach a mutual decision on the terms that will apply to the termination of your marriage regarding custody, support payments, and property division. Divorce is never easy. However, it becomes even more overwhelming when dealing with a high-net-worth divorce, as many more valuable assets are at stake. As such, after pouring their heart and soul into building and making their business successful, many high-net-worth individuals wonder how they can safeguard their ownership stakes during a high-net-worth divorce. If you’re currently facing a high-net-worth divorce with much higher stakes, contacting a qualified Monmouth County High Net Worth Divorce Attorney who can help you safeguard your hard-earned assets is in your best interest.
What is a high-net-worth divorce?
Traditionally, a high-net-worth divorce involves couples with more than one million dollars in net liquid assets. They differ from traditional divorces because of the high value of assets that must be dealt with, as high-net-worth individuals often require an extensive division of assets process.
How can I safeguard my business?
Firstly, the primary way to protect your hard-earned assets, including a beloved business, is through a marital agreement. A martial agreement is a legal contract that can safeguard your business assets during a high-net-worth divorce, as you can clearly distinguish the property stake of each spouse in the business. Before you get married, you may establish a prenuptial agreement as you can stipulate asset ownership and, ultimately, what assets are subject to equitable distribution. Martial agreements are beneficial as they can mitigate the risk of future conflict over property division, as you can dictate how you intend to divide your marital assets in the event of a divorce. If you didn’t create a prenuptial agreement, you can still protect your assets with a postnuptial agreement. A postnuptial understanding functions like a prenuptial agreement, only it is made after marriage.
Nevertheless, if you did not establish a marital agreement, there are other ways to reduce the impact of a high-net-worth divorce on your business. Property ownership is often the most challenging to handle during a high-net-worth divorce. As such, you can create a formal agreement whereby you create ownership shares and buyout agreements based on fair value among the business owners. You can also create a business succession place where you can lay out an arrangement that ensures the long-term stability of your enterprise. Furthermore, you can opt for a collaborative divorce or mediation. These alternative dispute resolution routes can help you reach a mutually beneficial solution regarding the division of your business.
If you’re undergoing a high-net-worth divorce, contact a determined attorney from Paone Zaleski & Murphy, who can help protect your business’s interests. Our firm is prepared to represent your interests today to maximize your chances of achieving favorable results.
