Divorce can be challenging under all circumstances. The issue of children and money are two things that are sure to make your divorce hard. However, high net worth divorce cases are complex because spouses must typically share extensive assets. More money means more difficulties, as the phrase goes.
To prepare to retire, it’s typical for those of working age to purchase a variety of investments and assets. Married couples generally have double the number of such holdings due to the higher amount of their total pensions. Many divorced couples are surprised by how complicated and time-consuming the settlement process could be.
High-Asset Divorce Issues
A sizeable financial portfolio, young children requiring custody agreements, or astronomical wealth without a pre-nuptial arrangement are all issues that will put you on the opposite side of the table with your spouse, who is divorced during divorce discussions. Learn more about the most pressing issues involved in divorces involving high-asset assets.
1. Child Custody and Support
If children are part of the divorce process, settlement discussions could last long. Establishing child custody isn’t necessarily easy, and it can be even more complicated when child custody and child support are involved. Most of the time, even if one spouse doesn’t become the primary parent during a divorce, the higher-earning spouse will be accountable for paying child support.
Even in divorce cases involving high assets with huge settlements, parents might be able to negotiate an agreement that benefits themselves and their children. But, it is vital to hire a lawyer to ensure the rights of your child and you during custody talks and discussions about support.
2. Spousal Support or Alimony
The court’s spousal support ruling ought to consider the earning potential of both spouses. For instance, if one spouse has a substantial net worth and divorce is finalized. In this scenario, the court may give significant spousal or alimony because the spouse’s previous earning capacity usually indicates the spouse’s future earnings potential. Both spouses must have a family law attorney who thoroughly analyze their marriage and offer the most robust case possible in court.
3. Pre-nuptial and Post-nuptial Agreements
Divorces involving wealthy individuals usually require the use of pre-nuptial agreements and postnuptial. If both parties had considerable assets before the marriage, it’s common to create a pre-nuptial or postnuptial contract to safeguard their assets in case of divorce.
You may be able to modify your pre-nuptial or postnuptial agreement with the assistance of legal counsel. A lawyer can help you create and enforce these agreements since it’s easy to fall behind on the property and assets you are legally entitled to if you don’t have someone looking out for your best interests.
4. Property Division
In a joint property state, a married couple’s assets, as well as their income and debts, are all viewed as joint. It is crucial, however, that you seek legal advice to protect “separate property,” or the assets one spouse had before the marriage. Inheritances, gifts, legal settlements, and distribution of assets, as also any proceeds from the sale of property that is separate, can all be considered as separate property.
5. Business and Investments
When a divorce is finalized, many possibilities exist to divide investment and businesses. If the investment or business were established or acquired before the marriage, especially shared funds, the assets would likely be considered community property and divided evenly. If a company or investment was owned before marriage or purchased with separate financial resources, it could be deemed separate property.