Divorce is not usually an easy process for a couple. The proceedings can be stressful, both emotionally and financially. It can become that much more difficult if the spouses are of high net worth. When this happens, spouses have to be careful and ensure they have a skilled attorney to defend their best interests.
What is a High Net Worth?
Spouses qualify for a high net worth divorce is they have assets that are worth one million dollars or more. The majority of these proceedings are similar to regular divorce proceedings. They cover marital assets such as child custody, child support, spousal support, and the division of assets. However, the proceedings for a high net worth divorce can become more complicated because they deal with expensive and significant assets as well. This can include:
- Intricate retirement and deferred income structures
- Business ownership, including partnerships, and limited liability companies/corporations
- Tax structures and planning
- Real estate holdings
- Widespread investments
Do I Have to Provide Financial Information?
In the event that the couple’s divorce is contested, they must provide several documents regarding proof of finances. This can include tax returns and net worth statements. With this, the court can have a full understanding of the couple’s finances and how much each spouse is worth. This helps them to determine how the assets should be divided between the two of them. This information is also shared with the Internal Revenue Service (IRS), which ensures the court will not find any inconsistency with the couple’s financial claims. This holds the spouses responsible for telling the truth about their finances.
How Can You Protect Yourself?
The most efficient way a spouse can protect themselves from financial difficulty during a divorce is to create a prenuptial agreement. This is a document that can be signed before getting married. It allows couples to predetermine what will happen to their assets should their marriage not work out and they get a divorce. Spouses are also able to get a postnuptial agreement. This is the same idea as a prenuptial agreement, only it is signed and settled after the marriage is validated.
Contact our Firm
Anderson, Converse & Fennick is an experienced law firm in York County, Pennsylvania focusing on Education Law, Family Law, Estate Planning, and Civil Litigation matters. If you need a knowledgeable attorney that will effectively represent your interests, contact Anderson, Converse & Fennick today.