Why High-Asset Divorces Are So Much More Complicated
If you are facing a high-net-worth divorce, you must understand that the road ahead is fundamentally different and far more complex than a typical separation. The process you are about to begin will feel less like the end of a personal relationship and more like the dissolution of a business. The emotional strain may be considerable, as it will be coupled with intricate legal and financial challenges that require strategic thinking, patience and experienced counsel.
One of the greatest hurdles faced in a high-net-worth divorce is the sheer complexity of marital assets, which likely extend well beyond a primary residence and bank accounts. You may have to untangle finances that include majority or minority stakes in privately-held businesses, multiple real estate holdings, trusts and investment portfolios with assets like private equity or hedge funds. Valuables such as fine art, classic cars, or yachts also need to be appraised and divided.
Because your assets are so large and varied, determining their value is often a major battleground. You and your spouse might each retain forensic accountants and business valuators, who will likely arrive at vastly different figures. This battle of experts can lead to protracted disputes. Furthermore, the temptation to hide or undervalue assets is significantly higher when millions of dollars are at stake. Your divorce attorney and financial expert may need to conduct exhaustive investigation, potentially tracing funds through shell companies or offshore accounts.
Negotiating alimony, known in New York as maintenance, also becomes more contentious. The legal standard for an award is often based on maintaining the marital standard of living, which in your case, may be exceptionally high. Defining this lifestyle requires a detailed analysis of years of spending on everything from vacations and household staff to philanthropic giving. Coming to an agreement on the appropriate amount and duration of these payments can significantly complicate divorce proceedings.
Finally, using state child support guidelines is often insufficient for high-income families. Instead, the focus will be on maintaining the higher standard of living your children have known. This may include covering expenses for private school tuition, recreational activities and other amenities. Discussions can be intensely personal and sometimes emotionally charged. Careful negotiation is needed to protect your children’s well-being while ensuring a fair outcome.
The attorneys at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP have deep experience working out creative solutions in high-net-worth divorces. To discuss your legal issues and learn how we can help, contact us online or call us at 631-360-0400.