Why a High-Net-Worth Divorce Needs Special Handling
A high-net-worth divorce is generally defined as one in which the spouses have liquid assets valued in excess of a million dollars. These assets often consist of real estate, investments, businesses, luxury items and financial portfolios. High-net-worth individuals include entrepreneurs, corporate executives and individuals with inherited wealth. Their divorces typically involve more intricate financial analysis due to the complexity and high value of the assets involved.
Among the main challenges of a high-net-worth divorce is the valuation of unique properties and assets. These might include rare art collections, vintage cars, real estate holdings or ownership stakes in private companies. Assets must be appraised to determine their current and future value, often requiring expert appraisers in fields like art, antiques and jewelry. In the case of businesses or intellectual property, determining value is not always straightforward and may require a professional’s analysis of revenue, market trends and future potential.
In a New York divorce, dividing marital property follows the principle of equitable distribution. This doesn’t necessarily mean a 50/50 split but rather a division that is considered fair and reasonable. The court considers such factors as the duration of the marriage, the contributions of each spouse to the marriage (including non-financial contributions) and the health and financial status of both parties. Equitable distribution covers property acquired during the marriage, including income, investments and jointly owned property. It excludes property that is deemed separate, such as assets owned before the marriage or inheritances or gifts that were kept separate throughout the marriage.
In a high-net-worth divorce, contesting property distribution can be a lengthy and costly ordeal. It can be adversarial when both parties try to secure as much of the wealth as possible, at times hiding or understating assets. Entering into a settlement agreement is preferable. A settlement can save time and money, offering both parties a more predictable outcome. Settling also provides privacy, as opposed to the public nature of a court trial. Reaching an agreement allows both spouses to negotiate terms that work for their specific situation, allowing a smoother transition into post-divorce life.
A qualified New York divorce attorney with experience in high-net-worth cases can provide insight into the financial intricacies of the divorce, ensure the proper valuation of assets and negotiate effectively to reach a settlement that protects your interests.
For people involved in a high-net-worth divorce on Long Island, the law firm of Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP in St. James offers experienced legal counsel. Call us at 631-360-0400 or contact us online to arrange a free initial consultation.