Generally, the process of divorce is not easy. The proceedings can often be stressful and overwhelming for spouses, both emotionally and financially. This process can be more complicated if the spouses are of high net worth. In these situations, it is important for the spouses to be cautious and contact a skilled attorney to defend their best interests.
What is a High Net Worth?
A high net worth occurs when the spouses have assets that are worth one million dollars or more. The process of high net worth is similar to regular divorce proceedings, covering marital issues such as child custody, child support, spousal support, and the division of assets. However, high net worth divorce proceedings can become difficult as they deal with significant assets. This can include 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?
If a high net worth couple goes through a contested divorce, they are required to provide the court with several documents with proof of their finances. This can include net worth statements as well as tax returns. Through this proof, the court can fully understand the couple’s financial state. This is important because it allows the court to determine how the assets should be divided between the spouses. Because this information is shared with the Internal Revenue Service (IRS) as well, there can be no inconsistencies with the financial claims of the couple. This holds them responsible for being truthful about their financial state.
How Can You Protect Yourself?
There are options for high net worth spouses to protect their assets when entering a marriage. The most efficient way this can be done is to create and sign a prenuptial agreement. A prenuptial agreement is a document that can be signed before marriage, allowing the couple to predetermine the state of their assets in the event that they get divorced. In addition to this, it is possible to get a postnuptial agreement. Similar to a prenuptial agreement, this document determines the future of their assets. However, it is signed after the marriage is validated.
Contact our Firm
If you require strong legal representation for matters of divorce and family law in New Jersey, contact The Law Offices of Paone, Zaleski & Murphy to schedule a consultation with one of our experienced attorneys today
