Experienced NY High Net Worth Divorce Attorneys Answer the Most Frequently Asked Questions

Jeff Bezos and MacKenzie Scott. Angelina Jolie and Brad Pitt. While these high-profile divorces grab headlines, high net worth divorces extend far beyond media tycoons and business magnates. In reality, anyone with assets totaling $1 million or more who is considering divorce will likely face the complexities of a high-asset separation.

As experienced New York high net worth divorce attorneys, we’ve helped numerous clients protect their wealth. Over the years, we’ve identified common concerns and questions that arise when significant assets are at stake.

In this blog, we’ll address the most frequently asked questions we receive from our high net worth clients. Whether you’re a finance professional, a successful entrepreneur, or a high-earning individual in any field, this information will provide you with valuable insights as you contemplate or begin the divorce process. Our goal is to provide clear, actionable information to help you safeguard your assets and secure your financial future during this critical life transition.

What Defines a High Net Worth Divorce in New York?

While there’s no official threshold, divorces involving assets of $1 million or more typically fall into the high net worth category. However, in New York’s financial epicenter, we often handle cases with assets ranging from tens to hundreds of millions. These divorces require a strategic approach due to the complexity of asset division, tax implications, and potential business valuations.

How Will My Assets Be Divided in a New York High Net Worth Divorce?

New York follows equitable distribution laws, meaning your marital assets will be divided fairly, but not necessarily equally. The court considers various factors, including:

• The income and property of each spouse at the time of marriage and at the time of divorce
• The duration of the marriage
• The age and health of both spouses
• The need of a custodial parent to occupy or own the marital residence and to use or own its household contents
• The loss of inheritance and pension rights upon divorce
• The loss of health insurance benefits upon divorce
• Any award of spousal maintenance (alimony)
• The contributions of each spouse to the marriage, including homemaking and child care
• The future financial circumstances of each spouse
• The tax consequences to each spouse

Remember, “equitable” doesn’t always mean a 50/50 split. The division aims to be fair based on your unique circumstances.

What About My Pre-Marital Assets and Inheritance?

Generally, assets you owned before marriage or inherited during marriage are considered separate property and aren’t subject to division. However, if these assets have been commingled with marital property or have appreciated due to the efforts of your spouse, they may become partially or fully marital property. Maintaining clear financial records is crucial to protecting your separate assets.

How Are Business Interests Handled in a High Net Worth Divorce?

If you own a business, it will likely be one of the most valuable and complex assets to address. The process typically involves:

• Valuation by a forensic accountant
• Determining what portion is marital property
• Deciding whether to buy out your spouse, sell the business, or continue co-ownership

Each option has significant financial and practical implications that require careful consideration.

What About Hidden Assets? How Can I Ensure Full Financial Disclosure?

Uncovering hidden assets is a common concern in high net worth divorces. We employ forensic accountants and financial investigators to conduct thorough asset searches. This may include examining:

• Offshore accounts
• Shell companies
• Cryptocurrency holdings
• Expensive collections (art, wine, cars)
• Deferred compensation packages

Remember, attempting to hide assets is illegal and can result in severe penalties if discovered.

How Can I Protect My Privacy During a High-Profile Divorce?

Privacy is often a top priority for our high net worth clients. We can employ several strategies to keep your personal affairs out of the public eye:

• Filing under seal to restrict public access to court documents
• Using alternative dispute resolution methods like mediation or collaborative divorce
• Negotiating comprehensive non-disclosure agreements
• Avoiding public court appearances when possible

While we can’t guarantee complete privacy, we strive to minimize public exposure of your personal and financial information.

What About Prenuptial and Postnuptial Agreements?

Prenuptial and postnuptial agreements can provide significant protection in a high net worth divorce. These contracts allow you to predetermine how assets will be divided and can address issues like spousal support. However, they must be properly drafted and executed to be enforceable. If you have a prenup or postnup, our New York divorce attorneys will review it carefully to understand its impact on your divorce proceedings.

How Is Spousal Support Determined in High Net Worth Cases?

New York has guidelines for calculating spousal support, but in high net worth cases, these guidelines often don’t apply. Instead, the court considers factors such as:

• Standard of living established during the marriage
• Income and earning capacity of both parties
• Duration of the marriage
• Health and age of both spouses
• Other factors

The goal is to allow both parties to maintain a lifestyle reasonably comparable to what they enjoyed during the marriage, balanced against the payor’s ability to pay.

How Long Will My High Net Worth Divorce Take?

The duration of a high net worth divorce can vary significantly depending on the complexity of your assets, level of conflict, and willingness to negotiate. While some cases settle in months, others can take years if they go to trial. We strive to resolve your case as efficiently as possible while ensuring your interests are fully protected.

What’s My First Step in a High Net Worth Divorce?

Your first step should be to consult with an experienced high net worth divorce attorney. Before filing, we recommend:

• Gathering comprehensive financial records
• Assessing your short-term and long-term financial needs
• Considering your priorities and non-negotiables
• Exploring potential tax implications of different settlement options

With proper preparation and legal guidance, you can navigate your high net worth divorce with confidence, protecting your assets and securing your financial future. Remember, every high net worth divorce is unique. While these answers provide a general overview, your specific situation may require tailored strategies. Don’t hesitate to reach out for personalized advice to protect your wealth and ensure a fair resolution.

Protect Your Financial Interests in High Net Worth Divorce

Are you facing a high net worth divorce in New York? Whether you’ve built substantial assets together or one spouse has been the primary earner, Hedayati Law Group P.C. is a high net worth divorce law firm offering comprehensive legal counsel for all parties involved in complex financial situations.

With over 150 years of combined experience, our team is adept at managing the intricate details of high net worth divorces. We provide strategic counsel to ensure fair treatment and equitable distribution, regardless of your role in building the marital estate. Our thorough analyses of marital assets and liabilities create a complete picture of your financial landscape.

We focus on accurate valuation of business interests, real estate, investments, and other significant assets. Our experience extends to the fair division of retirement accounts, stock options, and other complex financial assets. When necessary, we offer strong representation in court for asset distribution and spousal support matters, advocating for the rights of both working and non-working spouses.

We understand that marital wealth, regardless of how it was accumulated, represents years of shared life and decisions. Emphasizing honesty, integrity, and a custom approach tailored to each client’s needs, we believe in providing divorce solutions as unique as you are. You can count on us to fight for your best interests with unwavering dedication.

Contact us today at (516) 334-4100 to schedule your complimentary consultation with a high net worth family lawyer. Let us help you navigate this challenging chapter and move toward a brighter future with confidence and peace of mind.

Copyright © 2024. Hedayati Law Group, P.C. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

Hedayati Law Group, P.C.
666 Old Country Road Suite 444
Garden City, New York 11530
(516) 334-4100
https://www.hedayatilaw.com/