High net worth translates to high stakes in any legal or financial negotiation in New Jersey. If you are going through a divorce, it is important to understand the differences between a high-asset divorce and a typical divorce. From complex asset divisions to long-term financial strategies, the legal nuances of a high-asset divorce can be overwhelming.
More complicated asset valuation
High-asset divorce calls for a thorough assessment of all properties and liabilities. This means both parties must agree on an accurate valuation for any business interests, real estate holdings, investments, pension plans and retirement accounts. If one or both of you is in the corporate world, the court must also consider stock options and executive compensation packages you may have. These assets are unique in that they appreciate over time.
Higher likelihood of hidden assets
It’s not always the case, but some spouses may endeavor to conceal some of their assets to avoid splitting them in the divorce. This could include income and investments they may have stashed away during the marriage.
Hidden assets can prolong the divorce process and even make it costs a little more. For example, if you suspect that your partner is concealing some marital property, you will need to hire a forensic accountant.
Hefty taxes
Taxes are always a consideration in any asset division, and this is especially true for high-net-worth individuals. You must determine which assets are taxable and understand the tax implications each decision will have on your finances post-divorce.
If you are contemplating a breakup in New Jersey, understanding your rights and adequately preparing for the process should be a priority. Divorce, for just about anyone, is not easy, but with the right guidance, you can do it in an assertive and straightforward way.
