Last Updated on: 16th March 2023, 02:17 pm

Challenges in High Net Worth Divorce in NJ

Experience Complex Issues

For couples who have amassed significant wealth during their marriage, a divorce can be a complicated affair. Attorneys and accountants face challenging issues when valuing and collating records for foreign properties, bank accounts, and collectibles in a high net worth divorce in NJ. These issues require expertise in handling complex assets and a high degree of attention to detail.

Properties Involved

In a high net worth divorce in NJ, properties involved could range from a marital residence to vacation homes, investment properties, or even commercial properties. The ownership of each property and how it was acquired, whether with marital or premarital funds, is essential in determining its division. A thorough understanding of each party’s ability to maintain the property after the divorce is also vital before making the final division.

Business Owners

Business owners often encounter unique challenges in a high net worth divorce in NJ. Experts are required to determine the fair market value of a lucrative business, which could take several weeks and be expensive. Forensic accountants will need to review the business’s site, books, property, client database, and goodwill to determine its value. If there are external interests involved, such as stock investments, deferred compensation, or even public holdings, this can make the valuation more complex, too.

Prenuptial or Postnuptial Agreements

Prenuptial and postnuptial agreements are becoming more common, outlining the characterization and division of property earned prior to or during the marriage. A valid prenuptial in New Jersey must be in writing, signed by both spouses, and engage in full disclosure of assets and debts. Couples must avoid using generic templates to save time and money, as this can result in more extensive litigation. Retaining an experienced attorney to draft these agreements is essential.

Child Support and Alimony

Child support and alimony are critical issues in a high net worth divorce in NJ. Child support costs may exceed typical expenses, with children of wealthy families accustomed to private schools, extracurricular activities, and more extensive travel. Calculating child support in such cases requires a balancing test, using factors like the needs of the child, the standard of living under which the child is used to, age and health of the child, and the earning capacity of each parent. Alimony is more commonly awarded in high net worth divorces in NJ, with judges relying on statutory factors, including the income and earning power of each spouse, child custody, lifestyle and needs based on age, and health, and the length of the marriage.

Tax Exposure

In a high net worth divorce in NJ, dividing up stock options, real estate equity, and retirement plans can impact each party’s tax obligations. Seeking the advice of an accountant or a tax lawyer is critical in figuring out the most beneficial methods of dividing property and creating a tax structure that will mitigate any tax exposure from the divorce. If you believe you have a high net worth divorce in NJ, contact Spodek Law Group and attorney Todd Spodek today for a free initial consultation at 201-845-7400. Our experienced attorneys will guide you through the complex issues and provide the best solutions tailored to your unique situation.

A Trusted High-Asset Divorce Lawyer in New Jersey

Dedicated to Helping Clients Work Through Complex High-Income Divorce Matters in Gloucester County and Throughout South Jersey

If you’re going through a high-income divorce case with a large marital estate, you know that legal considerations are crucial to getting a fair divorce settlement. At Spodek Law Group, our qualified high-asset divorce lawyers in New Jersey can confidently represent you in a divorce matter involving a large estate and high income. Whether you’re filing for divorce or responding to a complaint filed by your soon-to-be ex-spouse, effective legal representation is critical.

We’re experienced high-asset divorce attorneys who advocate for our clients’ rights. We understand how challenging this time is for you and your loved ones, which is why we’ll fight hard to protect your interests throughout the legal process. Our lawyers offer full-service legal representation and have extensive experience helping clients resolve their high-income divorce matters quickly and efficiently through negotiations, mediation, and other alternative dispute resolutions. And, if an agreement isn’t possible between you and your ex, our lawyers are fully prepared to go to court to represent and fight for your goals and desired outcomes.

Specialized High-Net-Worth Divorce Lawyers in NJ

Fighting to Protect Clients’ Rights During Complicated Divorce Proceedings Across NJ

In New Jersey, each divorcing spouse must present detailed arguments for fair distribution of assets, supported by strong evidence, because it’s an equitable division of assets state. This process can be complex, particularly in marital estates with significant assets, which is where our high-net-worth divorce lawyers in Gloucester County can help.

We help clients identify and address all the crucial issues related to their high-net-worth divorce matter. Our lawyers are fully resourced and capable of protecting your rights and interests given the unique circumstances surrounding your case. We’re thoroughly versed in legal procedures, accounting techniques, appraisals, and other methods for gathering evidence. We’ll use our experience and strategy to present information to the court clearly in pursuit of a fair and favorable resolution to your case.

The Six Issues to Be Aware of in High-Income Divorces Some critical issues in high-income divorce cases include:

• Asset discovery and valuation: One spouse may not know what marital assets exist, and there may be instances where one spouse may even take steps to hide property. Legal procedures for asset discovery and valuation can be used to your benefit.

• Education: If a spouse contributes to the earning capacity of the other spouse in the form of education, the contributions should be considered.

• Businesses and shareholder agreements: If a spouse owns a business, its value is a marital asset. Gathering proof of the true value of the business is a critical step for determining equitable distribution.

• Separate property: High-asset divorce cases often involve separate property, whether it’s brought into the marriage or received by inheritance or gift. These assets may be commingled. It can be challenging to identify and preserve separate property fairly.

• Prenuptial and postnuptial agreements: Enforcement of an agreement can be a key factor in case outcome. A prenuptial or postnuptial agreement is not enforceable for child custody or child support.

• Alimony and spousal support: With significant discretion given to the court in fashioning an award, it’s critical to gather and present the arguments for fairness given the circumstances.