A high net worth divorce means that a lot is at stake. Unlike middle-income
couples who are W-2 employees, high income couples often have a complex
financial life. Assets might include more than one home, several automobiles,
a business, significant investment accounts, jewelry and more. A high
net worth divorce often takes longer and is more contentious simply because
there is more property to fight over and divide.
Massachusetts is a "fair and equitable" state when it comes to
dividing marital assets. This means that the court considers several factors,
including the occupation, employability, income sources, age and health
of each spouse, when determining which party receives what assets. While
the law states that the division must be fair and equitable, it does not say that
it has to be equal.
Because the financial implications are so high, one spouse might try to
hide assets from the other by transferring them to a third person. One
party might try to keep financial records secret or devalue an asset by
neglecting it. As a result, forensic accountants are often needed to uncover
all marital assets. This process of property discovery only adds to the
complexity and length of a high net worth divorce.
The tax implications in a high net worth divorce can also complicate the
process. Each party might end up with an unexpected financial obligation
if he or she has to pay taxes on valuable property distributions.
No divorce is fun. Each one carries with it emotional challenges. The added
stress of diving up extensive assets in a high net worth divorce makes
these divorces even more complex and unsettling. If you are a high net
worth individual contemplating divorce, then please
contact us. Our skilled, experienced
divorce lawyers will review your situation and determine the best path forward. We are
here to protect your rights.