If you are getting divorced, you are most likely very concerned about what is going to happen with your assets. Oftentimes, emotional stress is compounded by financial stress in divorces, and if you or your spouse is a high net individual, you may have even more to worry about going forward. If you are getting a divorce as a high net individual, here are some of the questions you may have going forward:
How does income affect a divorce?
You or your spouse’s income will drastically affect the terms of child support, spousal support, and more. If you or your spouse has over $1 million in assets, then your divorce is considered a high net worth divorce. If this is the case, you must hire an experienced attorney as soon as possible. Doing so will drastically improve your chances of retaining the assets you feel you are entitled to.
What assets can a high net worth divorce impact?
Outside of all the standard divorce issues, high net worth divorces impact various other aspects of your finances as well. Additionally, the courts will rigorously examine both you and your spouse’s financial records to establish a clear picture of how your marriage functions financially. If you are caught either untruthfully or incorrectly submitting this information, you may be subjected to an investigation by the IRS. Some of the assets that may come into question in a high net worth divorce are as follows:
- Retirement accounts, 401(k)’s, pensions and benefits are generally considered shared assets during a marriage, so they are all up for equitable distribution in a divorce.
- Shared businesses, partnerships or business investments: If you or your spouse own a business, that too, may be subject to equitable distribution.
- Real estate and property holdings: Vacation homes, your primary residence, timeshares, and any other property you own may come into question in a high net worth divorce.
- Out of state or international assets: If you or your spouse conduct business in a foreign nation, you will face certain tax consequences in the event of a divorce.
Can I protect my assets and business from a divorce?
Yes, you can. Many people draft prenuptial agreements before they are married to protect their assets from a divorce. However, if you are already married, you may still draft a postnuptial agreement, which essentially functions the same as a prenuptial agreement. Lastly, if you jointly own a business with your spouse, you may draft a shareholder agreement to protect your assets as well.
Contact our experienced Massachusetts firm
If you require compassionate and knowledgeable legal guidance for a matter of divorce, family or estate law, please do not hesitate to contact the experienced attorneys at the Law Offices of Cynthia L. Hanley today. We recognize the impact a divorce can have on the lives of you or your children, which is why our firm proudly serves clients in Mansfield, Massachusetts and throughout Bristol County.
