High Net Worth Divorce in New York

What is a High-Net-Worth Divorce in New York?

In many ways a high-net-worth divorce in New York is similar to the traditional divorce process, common family law issues such as child support and spousal support or alimony, may arise and will need to be resolved. The main difference in a high-net-worth divorce in New York is the amount and type of assets involved. Additionally, prenuptial agreements or inheritances and trusts may play a major role in the way assets are divided. Understanding how New York determines the division of assets is important when you are facing a high-net-worth divorce in New York.

Dividing Assets in a High-Net-Worth Divorce in New York

When determining how assets will be divided in the event of a high-net-worth divorce in New York, the courts follow the rule of equitable distribution. It’s important to note that equitable distribution doesn’t necessarily mean “equal” distribution. Instead, the courts try to divide assets in a way that is fair for both parties. Many factors are considered when diving assets during the divorce process, especially when significant assets are involved. Here are some factors courts will consider when dividing assets in a high net-worth divorce in New York:

• Contributions made to the marriage.
• Each spouse’s income and assets.
• Future financial considerations of each spouse.
• Tax consequences as a result of divorce.
• The duration of the marriage.
• The age and health of each spouse.
• Any children involved.
• Business Assets.
• Inheritances.
• Pre-nuptial and post-nuptial agreements.
• Any investment accounts.
• Stocks and bonds.
• Retirement accounts and 401ks.
• Real estate and other luxurious assets.

Potential Issues that Could Arise During a High Net-Worth Divorce

While the court will consider all the factors above to determine how assets will be divided during a high net-worth divorce in New York, it’s important to be aware of unique complications that could happen during the process. Here are some issues that can come up and should be considered by high net-worth individuals:

• Asset Valuation: Luxury assets can include unique items that may require experts to step in to make sure all assets are properly valued and accounted for in the distribution process.
• Hidden Assets: One spouse can hide assets to undervalue assets they may have like offshore accounts or undisclosed assets and property.
• Business Interests: When a business is involved the division of ownership can be complicated.
• Tax Implications: Divorce can impact an individual’s taxes, especially for high-net-worth couples.

High-net-worth divorces require the experience of a knowledgeable divorce lawyer. Not only are these cases complex, but the financial details will be best resolved with the help of an attorney who has the resources to fully investigate sources of assets and income and help protect the client’s financial interests.

Understanding the High Net-Worth Divorce Process

Legally the high net-worth divorce process is the same as any other divorce, however, they do require a higher level of detail to ensure assets are divided appropriately. Once you’ve determined to dissolve your marriage it’s advisable for each party to work with an experienced high-net-worth divorce attorney in New York to help get the divorce process started. They can help you file your petition for divorce and all of the other necessary paperwork that will follow. You will also have to go through the discovery and financial disclosure process where both parties exchange information regarding finances, assets, and any other relevant documents. Additionally, if children are involved matters of custody and child support will need to be addressed. Once all information has been disclosed, you can begin negotiation discussions in order to reach a settlement. In the event you can’t reach a settlement the courts will intervene and use the equitable distribution rule to determine how assets will be split in your divorce. When a settlement is reached the courts will finalize the agreement to make it legally binding.