Getting a divorce is complicated no matter what your financial situation is. But when you and your spouse are a high-asset household, the process can become even harder. High-asset divorces typically involve couples with assets valued at $1 million or greater. And all of those assets will need to be divided appropriately, which can lead to some unique situations. Your New Jersey divorce lawyer wants you to be prepared. Here are some ways that a high-asset divorce can be more complicated than other divorces.
Complicated Property Division
High-asset divorces often mean dividing more property between you and your spouse. This includes everything from homes and vehicles to investments, artwork, and high-worth collectibles. The more property you have, the harder those divisions will be. The sooner you and your spouse can come to an agreement on how you want the property divided, the better. Consider mediation in these instances to further speed your divorce’s timeline up.
High-Cost Alimony and Spousal Support Payments
If you and your spouse have been married for a while and your spouse doesn’t work or doesn’t work enough to maintain their current standard of living, you could have to pay alimony or spousal support payments for a time. This can be especially costly for high-asset couples as the working spouse will need to foot the bill. Keep in mind that spousal payments are not required by law. You and your spouse are free to negotiate spousal payments or waive your right to them as part of your divorce.
Impacts on Your Tax Situation
Getting divorced as a high-asset individual can dramatically change your tax situation. You may no longer be entitled to a lower tax bracket since you’ll file individually once the divorce is finalized. That change could result in a dramatic increase in your tax bill. But the inverse could also apply. After the division of your property, you may find yourself in a lower tax bracket than you were originally, potentially lowering your tax liability.
Business Interests Matter, Too
If you and your spouse co-own a business or are joint investors in a venture, those business interests will likely factor into your division of property. Ultimately, you’re free to negotiate a fair arrangement with your spouse but make sure to disclose as much information about those interests as you can. If the court thinks you’re hiding information or your spouse believes that something doesn’t add up, it can make your divorce take even longer.
Work With an Experienced New Jersey Divorce Lawyer
High-asset divorces are functionally the same as other divorces, but they come with their own unique challenges. That’s why you need an experienced New Jersey divorce lawyer, who is familiar with high-asset divorces and all of their challenges, to help you from the very beginning.
At Carvajal Law, our team understands that divorce is a difficult time in your life, and if you have a lot of assets in your name, it can be even more stressful. We’ll represent your interests to help you get a fair divorce settlement. Contact us today to schedule a consultation and see how we can help.