Divorce may be different for a couple with substantial assets. While any divorcing couple with children must resolve matters such as property division and child custody, there are three unique considerations in a high-net-worth divorce in New York State. First is spousal maintenance, which may involve considerably higher payments based upon a variety of factors including lifestyle. Second is property division, which could be more complex in a high-net-worth divorce, depending on the actual assets. Third is the necessity of uncovering any hidden assets to secure an equitable division of marital property. A lawyer experienced in handling high-net-worth divorces can help you through this complex process.
Spousal Maintenance
Spousal maintenance, also known as alimony, refers to payments that one former spouse makes to the other after a divorce. The court can award spousal maintenance long-term or temporarily while the divorce case is in process. In determining the amount of spousal maintenance, the court will consider various factors including but not limited to:
- The length of the marriage
- The earning capacity of both spouses
- How each spouse contributed to the marriage
In a high-net-worth divorce, one spouse may have much greater earning capacity than the other. However, the spouse with a lower earning capacity may have contributed to the marriage in various ways, such as raising children and maintaining the household. In this case, the court may award substantial spousal maintenance.
Property Division
In a New York divorce, property division is based on the principle of equitable distribution. This means assets will be divided fairly but not necessarily equally. To divide property equitably between the two spouses, the court must first distinguish between separate and marital property.
Separate property includes:
- Any property either spouse owned before getting married
- Any inheritance either spouse received during the marriage
- Any gift either partner received from someone other than their spouse
Separate property remains separate in a divorce. If you owned any property before the marriage, you don’t need to share this property equitably with your spouse provided that you can trace that separate property at the time of your divorce.
Marital property includes all property acquired by either spouse while married, other than inheritances or gifts. This can include:
- Businesses
- Stocks and bonds
- Private equity
- Real estate
- Trusts
Marital property is divided equitably between the two divorcing spouses. Before the court can divide marital property fairly, you must establish the true value of every asset the couple owns. High-net-worth couples typically own extensive property. Determining the value of that property may be complex and often requires the help of forensic accountants and other experienced professionals.
Asset Discovery
If you and your spouse own a lot of property, how can you be sure that you know about every asset you own together? If your spouse doesn’t want to share all marital property equitably with you, they may attempt to hide some of the assets that should legally belong to both of you. They may also attempt to commingle marital and separate property to confuse matters and mislead the court.
Hiding assets to keep them from being divided equitably in a divorce is not legal, but it is common. Forensic accountants can track down hidden assets and help make sure you receive what you are due in a high-net-worth divorce.
Contact a New York Divorce Lawyer Today
If you’re facing a high-net-worth divorce in New York, you have a complex task ahead of you. It’s challenging to resolve how much spousal maintenance will be paid and for how long, to accurately identify and value all marital property, to trace separate property and to find hidden assets so they can be divided equitably. You need professional help to complete these tasks properly.
An experienced and zealous divorce attorney like Lisa Zeiderman, Esq., can help you protect your finances, your legal interests, and most importantly, your children. If you’re going through a high-net-worth divorce in New York, contact Lisa Zeiderman, Esq., today to arrange an initial consultation.