High-Asset Divorce

Divorce can be a complex and emotionally taxing process, but the stakes are often much higher for individuals involved in high-asset divorces. High-net-worth individuals face unique challenges when it comes to dividing substantial assets, managing tax implications, and protecting long-term financial interests.

At Sanvenero & Cittadino Attorneys at Law, we understand the intricacies of high-asset divorces and provide personalized, strategic legal representation to help you navigate these complicated proceedings.

What Is a High-Asset Divorce?

A high-asset divorce involves one or both parties with significant wealth or assets, including but not limited to real estate, businesses, retirement funds, investments, and luxury items. These types of divorces often require a more nuanced approach to ensure the equitable division of property and protection of each spouse's financial future.

High-asset divorce cases are frequently characterized by the need to value complex assets accurately and address concerns, such as the possibility of hidden assets or income. When the assets at stake exceed the typical marital estate, both spouses may be more aggressive in defending their financial interests, leading to lengthier and more contentious divorce proceedings.

Key Factors in High-Asset Divorces

Several factors make high-asset divorces more complex than standard divorce cases:

• Valuation of Assets: One of the primary challenges in a high-asset divorce is determining the value of the marital estate. Assets like businesses, investments, properties, and retirement accounts can be difficult to appraise, and it is crucial to have expert witnesses or financial professionals involved to ensure fair valuation.
• Hidden Assets: High-net-worth individuals may have the means to hide assets, either by transferring them to offshore accounts or undervaluing certain properties. A skilled New Jersey high-asset divorce lawyer will have the resources to conduct thorough investigations and uncover hidden assets.
• Income Sources: High earners may receive income from multiple sources, such as business ventures, investment portfolios, stock options, or other passive income streams. Properly identifying and categorizing all sources of income is essential to ensure an accurate division of property and spousal support.
• Prenuptial or Postnuptial Agreements: Many high-net-worth individuals enter marriage with prenuptial or postnuptial agreements that outline the division of assets in the event of a divorce. These agreements can significantly influence the outcome of a high-asset divorce, but they are not always enforceable. A seasoned lawyer can help you determine whether these agreements are valid and fair under New Jersey law.

Division of Property in a High-Asset Divorce

New Jersey follows an equitable distribution model, meaning that marital property will be divided fairly, though not necessarily equally. Due to the number and value of assets involved, the division of assets in a high-asset divorce is often more complicated than in less complex cases.

New Jersey courts will consider a range of factors when dividing property, including but not limited to:

• Length of the Marriage: The longer the marriage, the more likely it is that the court will divide the assets equally or in a way that reflects the contributions of both spouses to the marriage.
• Contributions to the Marital Estate: This includes both financial and non-financial contributions. For example, a spouse who has stayed home to care for children or managed household duties may have contributed just as significantly to the marriage as the spouse who worked outside the home.
• Economic Circumstances of Each Spouse: The court will consider each spouse's financial position after the divorce. If one spouse is entitled to alimony or child support, the court will factor this into the asset division to ensure that both parties are financially secure.
• Tax Consequences: High-net-worth divorces may include valuable assets like stocks, bonds, or real estate. Dividing these assets can have significant tax implications, so it is crucial to consider the long-term financial impact of asset division decisions.

Complex Assets and Business Valuation

In high-asset divorces, the division of businesses and other complex assets often becomes a point of contention. If either spouse owns a business, it may need to be valued by an expert to determine its worth as part of the marital estate. Business ownership also raises questions about whether it is considered a marital asset and how the ownership interests should be divided.

For example, if one spouse has started a business during the marriage, the court will typically view it as part of the marital estate, which could result in a significant financial settlement. In contrast, if a business was started before the marriage, the court will need to determine the increase in value during the marriage and allocate that portion accordingly.

Spousal Support (Alimony) in High-Asset Divorces

Alimony can be another complex issue in high-asset divorces. While New Jersey courts consider various factors when awarding alimony, including the length of the marriage and the financial needs of each spouse, high-net-worth individuals may negotiate significant alimony payments.

There are different types of alimony in New Jersey, including:

• Open Durational Alimony: This form of alimony is awarded when the marriage is long-term (usually 20 years or more). The payments continue indefinitely or until the recipient spouse remarries or either party experiences a substantial change in financial circumstances.
• Reimbursement Alimony: This type of alimony compensates a spouse for contributions made to the marriage, such as sacrificing a career to support the other spouse or the family.
• Limited Duration Alimony: This type of alimony is temporary and meant to help a spouse transition to financial independence after divorce.
• Temporary Alimony: This alimony is awarded during the divorce process to ensure that the spouse can maintain the standard of living established during the marriage.

In high-asset divorces, courts may also consider the standard of living enjoyed by both spouses during the marriage when determining alimony.

Child Custody and Parenting Time

In high-asset divorces, child custody and parenting time often become contentious. Parents may dispute who should have primary custody or how to allocate parenting time. New Jersey courts prioritize the best interests of the child when making custody decisions, considering factors like each parent’s ability to provide for the child’s emotional and physical needs and the stability of their home environment.

In cases involving high-asset divorces, both parents may have the financial means to provide an excellent home for their children, which can complicate matters further. Additionally, parents may dispute the amount of parenting time each one should receive or whether one parent is entitled to more time based on their wealth or lifestyle.

How Can Sanvenero & Cittadino Attorneys at Law Help You With Your New Jersey High-Asset Divorce?

Dividing significant assets, negotiating alimony, and addressing complex custody matters in a high-asset divorce can be overwhelming. At Sanvenero & Cittadino Attorneys at Law, we have extensive experience working with high-net-worth individuals to ensure that their assets are divided equitably, their financial future is protected, and their rights are upheld throughout the divorce process.

Our team can assist with:

• Valuing complex assets, including businesses and investments.
• Protecting assets from being hidden or unfairly distributed.
• Navigating prenuptial and postnuptial agreements.
• Negotiating or litigating alimony and child support.
• Advocating for fair and reasonable custody arrangements.

If you are facing a high-asset divorce and need experienced legal representation, contact Sanvenero & Cittadino Attorneys at Law. We are dedicated to helping you achieve a favorable outcome and protect your financial well-being.