High net worth divorces only differ from other divorces due to the amount or value of assets that are to be split between the spouses. A high net worth couple is considered to be individuals with combined assets of $1 million. This means that they have assets that value up to this amount or higher. With this amount or value of assets, they may have more to consider. A judge will have to consider all of their assets, which can be more time-consuming due to the amount that is involved in the distribution of assets. However, judges still use equitable distribution to divide assets between spouses. They will do their best to divide the assets in a fair and just manner that considers other aspects. During this time the assets will not be divided equally, but fairly. Just because equitable distribution is being used does not mean that the assets will simply be split between spouses. Instead, other factors are considered, such as each spouse’s income, their marriage length and more, to determine how assets are distributed between them.
Many properties and even businesses can be involved in this divorce. Without a prenuptial agreement in place, these assets will now have to be examined during the division of assets process. This can require more time for a decision to be made.
What is the discovery process?
When a divorce enters into litigation, a discovery process may be used to examine each spouse’s assets. High net worth individuals will have to disclose statements with their net worth and other financial information. This can reveal what they own and how much money and assets make up their net worth. Either spouse can be at risk for a full financial probe. This can feel quite invasive for these individuals. At this time, they should make sure they have an attorney on their side defending them and doing their best to protect them from financial probes. The court may employ a forensic accountant to uncover information that could be troublesome for either spouse. If discrepancies are found in the report, the court will have to make a report to the IRS, warning them about your financial inconsistencies or issues. This can provide further financial trouble.
Peter V. Mandi, Esq. is an experienced divorce and family law attorney located in Bohemia, New York. If you require strong and dedicated legal representation in Long Island, New York, contact Peter V. Mandi & Associates, Inc. today for a free consultation.