Divorce in New Jersey can be emotionally as well as financially draining. However, when it comes to high-asset divorces, the stakes are even higher, and the issues that arise can be even more complex to navigate.
Asset division
The more complex the assets, the more challenging it can be to divide them equitably. Some assets may be straightforward, such as bank accounts and real estate, but others may require expert valuation and analysis, such as business interests, stock options, investment portfolios or even art collections. When there are high-value assets at stake, one party may try to conceal or undervalue them to avoid equitable distribution.
Spousal support
The spouse with a lower income or earning potential may require spousal support to maintain their standard of living after the divorce. However, the amount of spousal support can be a heated point of contention, especially when the assets are substantial and the standard of living is high. Factors such as the marriage duration, the income disparity between the spouses and the contributions of each spouse to the marriage are considered when determining spousal support.
Business interests
Business ownership can complicate divorce proceedings. Valuing a business isn’t always a straightforward process. In some cases, one spouse may have built the business from the ground up, and the other spouse may have little involvement in the enterprise’s operations.
In such cases, the difficulty may lie in determining the value of the business and how much each spouse is entitled to. In other cases, both spouses may have worked in the business together, which can further complicate the valuation and asset division.
Tax implications
The sale of some assets may result in capital gains taxes. Divvying up retirement accounts can also result in tax consequences, such as early withdrawal penalties. It is essential to understand tax law to ensure that any asset division occurs in the most tax-efficient manner possible.
Privacy concerns
When high-profile individuals divorce, privacy can become a significant concern. The more valuable the assets, the more likely the divorce proceedings will attract media attention. Both parties may be reluctant to divulge sensitive financial information publicly, calling for mediation or arbitration to resolve the divorce proceedings away from the public eye.
Navigating a high-asset divorce
High-asset divorces present unique challenges and issues not present in the average divorce. With careful planning and knowledge of the law, getting through a high-asset divorce fairly and with minimal anxiety is possible.