If you and your spouse have a combined net worth of $1 million or more, your divorce will be considered a high net worth divorce. High net worth divorces deal with the same matters as a regular divorce. For example, you may still have to make decisions about child support, child custody, alimony, the division of assets, and more. However, high net worth assets are often more complicated, as the more assets a couple has, the more there will be to divide. Read on to learn more about high net worth divorce in Massachusetts.
What assets are at stake?
When it comes to a high net worth divorce, you and your spouse may have to divide some of the following assets:
- 401(k)’s, retirement accounts, pensions, and benefits
- Multiple properties or real estate, such as vacation homes
- Shared businesseses
Hiding Assets
To avoid losing assets, some spouses will make the mistake of attempting to hide their assets. Some common ways a spouse may hide his or her assets include:
- Overpaying on taxes so they can get the money back in a refund the following year
- Asking an employer to delay promotion or raise until after the divorce
- Delaying the receipt of a large commission from work
- Transferring assets to a friend or a separate bank account
If you suspect that your spouse is hiding assets, he or she will typically be investigated. This can be a long and expensive process. Additionally, the IRS may get involved, which can lead to legal trouble.
Creating a prenuptial agreement
The best way to protect your assets in the event of a divorce is by creating a prenuptial agreement. A prenup is an agreement that states how your and your spouse’s assets should be divided if the marriage comes to an end. This can prevent spouses from fighting for certain assets and can often allow couples to skip the expensive and lengthy process of litigation. If you got married without creating a prenuptial agreement, you can still create a postnuptial agreement. This is the same agreement, only it is created during the marriage, rather than before.
If you have any questions or concerns about a high net worth divorce, our firm is here to help.
Contact our experienced Bristol County firm
For over 30 years, The Law Offices of Cynthia L. Hanley, P.C. has provided quality legal support and representation for clients in Bristol County and all of Massachusetts. Our firm’s experience eases the stress of clients while providing the legal services they deserve. If you need help through a contested divorce, contact The Law Offices of Cynthia L. Hanley, P.C. for a consultation today.
