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Wealthy couples face unique challenges when they divorce. The law requires divorcing couples to divide their marital property equitably. Doing so can be exceptionally difficult when the couple has complex holdings.
Managing equitable distribution in a Hackensack high-asset divorce requires an attorney with a sophisticated grasp of finance and taxation. Contact O’Cathain Law Group Family Law Department for skilled and experienced legal representation.
Many high-asset couples enter into prenuptial or other marital agreements and expect these to govern their divorce. The agreements often designate specific property as separate property not subject to equitable division. They also usually offer the less wealthy spouse lump sum payments in lieu of claiming an interest in certain marital property.
An experienced high-net-worth divorce lawyer in Hackensack could carefully review the agreements to determine whether all the requirements for legal execution were met. They would also consider whether the agreement is unconscionable, meaning shockingly one-sided. Sometimes, an agreement that was reasonable when it was made becomes unconscionable at the time of enforcement because the value of the couple’s assets has changed over the course of the marriage. Both the time of execution and the time of enforcement must be considered.
Property division negotiations are impacted when the marital agreement is vulnerable to challenge because of flaws in execution or unconscionability. Depending on the circumstances, a spouse might decide to bring a legal action to invalidate the marital agreement in part or in its entirety. Alternatively, both sides might agree to set aside certain portions of their agreement and re-negotiate those terms.
Spouses must make comprehensive financial disclosures when they divorce. When a couple has extensive property, preparing accurate disclosures can be time-consuming. In a high-asset divorce, each side typically independently verifies the other’s disclosure.
When substantial assets are held in equities or currency, the valuation date can be a point of contention. Establishing an accurate value for personal property like collections and property held in foreign countries can be particularly challenging. High-net-worth couples often have interests in multiple businesses and trusts, and defining a value for those interests can be controversial.
Our law firm has a network of forensic accountants, appraisers, business valuation specialists, and other professionals to provide essential expertise during the disclosure process. In this way, we can ensure the distribution discussions proceed based on accurate information.
Once the couple has agreed on a valuation for their marital property, they must divide it fairly. The division need not be 50/50, but must be fair under the circumstances. It must also allow both spouses to have post-divorce lifestyles substantially similar to those they enjoyed while married, when possible.
When a judge must decide how to divide a couple’s property, New Jersey Statutes § 2A:34-23.1 allows them to evaluate the following factors, among others:
You must be advised of the tax consequences when deciding how to distribute marital property.
Wealthy couples often prefer to keep their financial affairs private and exert some control over the property division process. A negotiated divorce settlement, either through talks between the attorney or mediation between the parties, or a combination of both, is the right solution for many high-net-worth couples. Our seasoned Hackensack high-asset divorce attorneys could guide you through the negotiations and ensure the resulting settlement is fair.
Wealth can delay and complicate the divorce process. Identifying and valuing complex holdings often requires significant time and effort.
Work with a firm with substantial experience managing equitable distribution in Hackensack high-asset divorces. Reach out to the dedicated team of legal professionals at O’Cathain Law Group Family Law Department today to get started.