What You Should Know About High Net Worth Divorces
It’s generally assumed that the more assets you have, the more complex your divorce will be. When a divorce occurs, an inventory is taken of both spouses’ assets, debts, and other holdings. Different types of resources can lead to different types of challenges. For example, you may need to divest a retirement account without incurring financial penalty. In this article, the Tampa, FL high net worth divorce attorneys at Faulkner Law Group, PLLC will discuss various complications that arise during a high net worth divorce.
Factors that you need to consider in a high net worth divorce
You will need to consider several factors as you approach a high net worth divorce.
- Asset division – Generally speaking, high net worth divorces often involve a number of assets including properties, businesses, investments, offshore holdings, and luxury items. These assets will need to be accurately valuated during the divorce. This could involve the input of forensic accountants and appraisers who will help ensure a fair and equitable distribution of the marital estate.
- Business division – Spouses who own or are invested in a family-owned business will require the help of forensic accountants to determine the business’s value. Division of the business is also complex as both spouses likely have an equal claim to property that is part of the marital estate. If you owned the business before the marriage, then the value it accrued during the marriage is considered part of the marital estate. This can become quite complex very quickly.
- Child support – In high net worth divorce cases child support often involves private school tuition and travel costs related to extracurricular activities such as sports.
- Prenuptial and postnuptial agreements – In many high net worth marriages, a prenuptial or postnuptial agreement is in place. These agreements are legally binding and outline the division of important assets and spousal maintenance in a divorce.
- Privacy issues – Most high net worth couples prefer to avoid litigation for fear of their financial holdings becoming a matter of public record. For this reason, they choose mediation or collaborative divorce to avoid having their financials brought before the court.
- Spousal maintenance or alimony – Alimony and spousal support can be contentious issues in a high net worth divorce. Florida has recently reformed the rules related to permanent alimony. To come to a fair alimony payment, the court reviews several factors including the length of the marriage, the earning power of both spouses, and contributions made from the assets distributed from the marital estate.
- Tax implications – There can be significant changes to your tax status once a marriage ends. This could include the selling off of large assets when the proceeds are divided after a divorce. Understanding the consequences of property division to your taxes can help you avoid problems with the IRS.
Talk to a Tampa, FL High Net Worth Divorce Attorney Today
Faulkner Law Group, PLLC represents the interests of Tampa, FL residents who are pursuing a divorce. Call us today and we can help answer any questions you have on your high net worth divorce.