Divorce in New Jersey can be complicated regardless of your wealth or income level. However, for high-income couples, a few extra factors can make the process even more challenging.
Complicating factors for wealthy couples
The more wealth you have, the more there is to lose. When two people have accumulated a significant amount of wealth, there is more to lose in a divorce. This can make negotiations more difficult and lead to a more prolonged and more contentious battle in court.
In addition, unique assets can be challenging to divide equally. For example, if one spouse owns a valuable piece of art, cryptocurrencies or NFTs, it can be difficult to agree on who gets to keep what. In these cases, hiring a professional appraiser to determine these assets’ value is often necessary to divide them fairly.
Tax implications can also be complicated. Couples with significant assets divorce often have to contend with a complex web of tax implications. For example, capital gains taxes may need to be paid on assets that are sold in order to divide them equitably. This can make the process even more complicated and expensive.
Support payments may be higher for wealthy couples as well. In some cases, divorcing couples with high incomes may be ordered to pay spousal or child support payments that are higher than average. This is because courts typically consider the living conditions that your ex and kids were used to before your divorce and your financial capabilities when making support decisions. If one spouse has a significantly higher income than the other, that person may be ordered to pay more in support payments.
If you are considering a divorce and you have significant assets, it is vital to be aware of these potential complications. While every divorce is unique, high-net-worth individuals must proceed with care to separate their assets fairly.