Divorce can be a challenging process, and when a couple has significant assets, it becomes even more complex. In New Jersey, high-net-worth divorces involve many issues, especially when it comes to dividing property, investments, businesses, and other valuable assets. These cases often require careful attention to detail and an understanding of how New Jersey law works. Understanding how assets are divided in a high-net-worth divorce can make the process less stressful and help ensure that both parties receive a fair share of the marital estate. At Tanya L. Freeman, Attorney at Law, we are here to guide you through the legal process and help you navigate the complexities of your case.
Understanding Marital Property in High-Net-Worth Divorces
In New Jersey, the court follows a principle called equitable distribution when dividing marital property in a divorce. Equitable distribution means that the court will divide the assets fairly, though not necessarily equally. Marital property includes any assets or property acquired by either spouse during the marriage, with a few exceptions such as inheritances or gifts received by one spouse. In a high-net-worth divorce, this can include real estate, retirement accounts, business interests, stocks, and other significant financial investments. The court will determine which assets are considered marital property and then decide how to divide them fairly between the spouses.
It is important to note that the court does not simply split the property down the middle. Instead, the court will consider many factors when deciding how to divide the assets. These factors can include the length of the marriage, the income and earning capacity of each spouse, the contribution of each spouse to the marriage, and the age and health of each spouse. The goal is to reach a fair distribution that considers the needs and contributions of both parties.
More than an accomplished divorce and family law attorney, Tanya L. Freeman, is a consummate professional with a wealth of corporate and life experience. Known as a leader and strategist, Tanya L. Freeman was appointed by the Governor of New Jersey as Chair of the Board of Directors of the University Hospital in Newark, New Jersey. Tanya L. Freeman also presents among the ranks of public speakers. She captivates and inspires professional groups nationwide. "Tanya has the eloquence and oratory brilliance with the ability to forge deep connections with her listeners."
Tanya L. Freeman, Attorney at Law
Managing Partner of the Family Law Practice at Callagy Law
Valuing Assets in a High-Net-Worth Divorce
One of the most complicated parts of a high-net-worth divorce is determining the value of the assets. Many high-net-worth individuals own complex assets, such as businesses, real estate, investments, and valuable collections, which must be accurately valued before they can be divided. In some cases, the court may need to bring in financial professionals, such as appraisers or forensic accountants, to determine the value of the assets. This process can take time and may require a thorough review of financial documents, tax returns, and other records.
Valuing a business can be particularly challenging. The court must determine not only the current value of the business but also how much of the business is considered marital property. If one spouse owned the business before the marriage, the court may need to determine how much the business increased in value during the marriage and what percentage of that increase should be considered marital property. This process can be complex and may require the help of professionals who are experienced in valuing businesses.
Dealing with Hidden Assets in a High-Net-Worth Divorce
Another issue that can arise in high-net-worth divorces is the possibility of hidden assets. In some cases, one spouse may try to hide assets in order to prevent them from being included in the divorce settlement. This can involve transferring money to offshore accounts, undervaluing assets, or failing to disclose certain financial accounts or investments. If you suspect that your spouse may be hiding assets, it is important to bring this issue to the attention of your attorney. There are legal ways to investigate hidden assets, such as conducting financial audits or reviewing financial records. In some cases, the court may appoint a forensic accountant to help uncover hidden assets and ensure that they are included in the property division process.
I was very fortunate to find Tanya online during an urgent family matter. I was able to speak with her on our situation and she immediately jumped on the case the same day. I was impressed at her knowledge and her team as they were able to answer questions on the spot and navigate through an unpleasant situation. Her honesty and responsiveness have made this process much easier, and the support she has provided has truly gone above my expectation of a family law firm. This is truly an exceptional firm & I would highly recommend.” - Lydia Martinez My father recently hired Tanya Freeman; Family Law Attorney and her team as a replacement to handle his divorce which has been going nowhere for over 3 years with a different attorney. Tanya and her team have done so much within just a few months for his trial and has given my father a new sense of hope. The team is always quick to respond to any questions. The case is still ongoing, however, my father has newly restored confidence that he will be treated fairly and with his best interest in mind. We definitely recommend Tanya Freeman; Family Law Attorney." - Molly Howard Tanya is an outstanding attorney! Her attentiveness to detail and willingness to be honest with her clients means you’re going to get the best possible outcome for your case. She and her team went above and beyond, making sure my divorce and custody case ended neatly and in the best interest of my children. Her pricing is reasonable and she’s willing to work with you. I highly recommend Tanya Freeman to anyone going through a divorce or family law case!" - Jenifer Mckinney
Spousal Support in High-Net-Worth Divorces
Spousal support, also known as alimony, is another important issue in high-net-worth divorces. In New Jersey, the court may order one spouse to pay spousal support to the other spouse in order to help maintain the standard of living that was established during the marriage. The amount and duration of spousal support will depend on several factors, including the length of the marriage, the age and health of each spouse, and the earning capacity of each spouse. In high-net-worth divorces, spousal support can be a significant issue, as one spouse may have a much higher income or earning potential than the other.
When determining spousal support, the court will consider the needs of the spouse seeking support and the ability of the other spouse to pay. In some cases, the court may order temporary spousal support while the divorce is pending, and then determine a final spousal support order once the divorce is finalized. It is important to have an attorney who can help ensure that spousal support is fair and takes into account the financial situation of both parties.
Protecting Privacy in High-Net-Worth Divorces
Privacy is often a concern in high-net-worth divorces, as individuals with significant assets may wish to keep their financial information confidential. In some cases, divorce proceedings can become public, which can expose sensitive financial details. There are ways to protect your privacy during a high-net-worth divorce, such as using mediation or arbitration instead of going to court. These alternative dispute resolution methods allow you to work out the terms of your divorce in a private setting, without the need for public court proceedings.
If you are concerned about privacy, it is important to discuss this with your attorney. Your attorney can help you explore options for keeping your financial information confidential and ensuring that your privacy is protected throughout the divorce process.
Related Videos
Prenuptial and Postnuptial Agreements in High-Net-Worth Divorces
Many high-net-worth individuals choose to protect their assets by entering into prenuptial or postnuptial agreements. A prenuptial agreement is a contract signed before the marriage that outlines how assets will be divided in the event of a divorce. A postnuptial agreement is similar, but it is signed after the marriage. These agreements can help protect assets and prevent disputes over property division during a divorce.
In New Jersey, prenuptial and postnuptial agreements are generally enforceable as long as they meet certain legal requirements. The agreement must be in writing, and both parties must fully disclose their assets and debts. Additionally, the agreement must be fair and not the result of coercion or fraud. If you have a prenuptial or postnuptial agreement, it is important to discuss it with your attorney to ensure that it is enforceable and that your rights are protected.
Tax Implications of Asset Division in High-Net-Worth Divorces
Dividing assets in a high-net-worth divorce can also have significant tax implications. Certain assets, such as retirement accounts or investment properties, may be subject to taxes when they are divided. It is important to consider the tax consequences of any property division and to work with professionals who can help minimize the tax impact. For example, transferring assets between spouses may trigger taxes if not done properly, and certain retirement accounts may require a special court order to divide without incurring penalties.
It is also important to consider the long-term tax implications of receiving certain assets. For example, if one spouse receives a valuable investment property, they may be responsible for paying taxes on any capital gains when the property is sold. An attorney can help ensure that the tax implications are considered when dividing assets and that both parties are aware of any potential tax liabilities.
Preparing for a High-Net-Worth Divorce in New Jersey
If you are facing a high-net-worth divorce, it is important to be prepared. Divorce can be a long and emotional process, and it is important to have a clear understanding of your financial situation. You should gather all of your financial documents, including tax returns, bank statements, investment account statements, and any other documents that show your assets and debts. Having this information ready can help ensure that the divorce process goes smoothly and that all assets are properly accounted for.
It is also important to work with an experienced attorney who understands the complexities of high-net-worth divorces. Your attorney can help you navigate the legal process, protect your rights, and ensure that you receive a fair share of the marital estate.
Navigating a high-net-worth divorce in New Jersey can be overwhelming, but with the right legal guidance, you can protect your assets and ensure that your interests are represented. The asset division process can be complex, especially when dealing with businesses, investments, and valuable properties. At Tanya L. Freeman, Attorney at Law, we understand the unique challenges that high-net-worth divorces present, and we are committed to helping you achieve a fair and equitable outcome. Contact our law firm today to discuss your case and learn how we can assist you in navigating the complexities of your high-net-worth divorce.