Dealing with a high-conflict divorce is challenging. Getting divorced when you have a high net worth and significant assets can complicate matters further. A divorce is considered high net worth if it involves a couple with assets totaling one million dollars or more. Complications with these types of divorces often surround property division and spousal support. These marriages also usually lasted longer, so determining equitable property division can be a long, complicated process. That’s why hiring a Central Florida divorce attorney with experience in high conflict, high net worth divorce cases is essential, like our team at the Remsen Family Law Firm. Here is what you need to know about filing for divorce when you have a high net worth.
Dividing Property and Possessions
All marital property is subject to equitable distribution during a divorce in Florida. Marital property includes any asset gained, purchased, or acquired during the marriage. When you have a high net worth, determining how your processions and property will be divided is one of the most challenging aspects of filing for divorce. Florida courts use equitable distribution to determine how marital property is divided in a divorce. Equitable distribution seeks for each spouse to be given a fair share of marital assets—not simply a 50/50 split. This can make high net-worth divorces especially contentious. Types of marital property include:
- Joint bank accounts
- All financial accounts
- Real estate property
- Cars
- Boats
- Furniture
- Gifts
- Life insurance plans
- 401ks
- Stocks and bonds
Marital property can also include assets that belonged to one spouse but changed ownership or gained value during the marriage. With high net-worth divorces, it’s likely that most assets increased in value during the marriage, even if you owned the asset outright and had it before you were married. In these cases, your spouse would be entitled to the value increase of the asset during the marriage. Calculating the exact value of an asset increased during a marriage can be challenging. The more assets that fall into this category, the longer the divorce will take to finalize.
Further complicating matters is if a spouse attempts to hide assets. Both spouses are required to submit financial paperwork regarding assets and income. If it’s determined that one spouse lied about their economic standing, there could be serious consequences, such as the other spouse being entitled to the entire value of the asset.
Determining Spousal and Child Support
Another challenging aspect of high-net-worth divorces is determining child and spousal support. Spousal support (also known as alimony) is a payment typically made by a higher-earning spouse to a lesser-earning spouse to help maintain their lifestyle and financial standing as they transition from married to single life. Child support payments are made from one spouse to another when there are children under 18 in your care. Even if you have 50/50 custody of your children, one parent (usually the higher-earning parent) will pay child support to the lesser-earning spouse. With these both in mind, it’s common for a high-net-worth spouse to pay both spousal and child support payments simultaneously.
Length of Marriage
How long you were married to your spouse affects how your property is divided and spousal support. The longer you’ve been married, the harder it is to determine what would be considered a non-marital asset. This is because the longer a couple is married, the more intermingling both spouses have in each other’s assets. Regarding spousal support, how long the spousal support payments last depends on the length of the marriage. Spousal support payments cannot last longer than 50% of the marriage length for short-term marriages (those lasting less than ten years), 60% for moderate marriages (those between 10 and 20 years long), and 75% for long-term marriages (20+ years).
Business Considerations
Many high-net-worth individuals became wealthy due to owning or running a successful business. Your business is considered marital property in most cases. Even if you owned your business before your marriage, the business’s increased value would be regarded as a marital asset. When filing for divorce, you’ll want to consider how you and your spouse will move forward with your business post-divorce. You can buy out your spouse’s interest in the business to continue operating without your spouse or sell the business and split the profits with your ex-spouse.
Tax Implications
The tax implications are complicated for high-net-worth couples due to the value of their property and the complexity of their investments. There are various factors to consider when it comes to taxes after divorce. For instance, when a married couple divorces and divides jointly owned property, there are typically no tax implications. However, certain transfers within trusts and stock redemptions may be taxable.
High Net Worth Divorces with Remsen Family Law Firm
Our experienced family law attorneys at Remsen Family Law Firm are dedicated to ensuring you receive the best possible outcome during your divorce. When dealing with a high-net-worth divorce, things can get complicated quickly. Hire an attorney to help fight for your rights and what you’ve worked for during your long career. Contact us online or call our office for a consultation to discuss your unique situation.
