A high-asset divorce refers to the dissolution of a marriage involving substantial financial holdings or significant property. These cases often include extensive financial portfolios, real estate, business interests, retirement accounts, and other valuable assets. Determining which assets are subject to division and accurately valuing them is key in resolving these cases. This may involve assessing not only tangible assets but also intangible ones, like intellectual property or deferred compensation.
How Are Marital Assets Divided in New Jersey?
New Jersey is an equitable distribution state, meaning marital property is divided fairly and not necessarily split 50/50. Marital property generally includes assets acquired during the marriage, regardless of whose name is on the title. Separate property typically consists of assets owned prior to the marriage or received as a gift or inheritance.
Courts consider multiple factors when dividing property:
- Length of the marriage.
- Financial circumstances of each party.
- Standard of living during the marriage.
Additional considerations include the contributions each spouse made to the marriage, including non-monetary contributions like homemaking or raising children.
How Are Business Assets Handled?
If the business was started during the marriage or experienced significant growth during the marriage, it may be considered a marital asset. In these cases, the business must be valued, which often involves evaluating financial records, goodwill, and future earning potential. Options for addressing business interests in a divorce may include selling the business and dividing the proceeds, one spouse buying out the other’s share, or retaining joint ownership. Courts strive to balance the financial interests of both parties while preserving the viability of the business when possible.
What Role Do Hidden Assets Play?
High-asset divorces may involve attempts to hide or undervalue assets, such as transferring property or concealing accounts. Courts take this seriously, and financial records, including tax returns and bank statements, are thoroughly examined. Discovery tools, such as subpoenas, are often used to uncover hidden assets.
How Are Retirement Accounts and Investments Divided?
Examples of retirement accounts and investments include pensions, 401(k)s, IRAs, and stock portfolios. Dividing these assets often requires a Qualified Domestic Relations Order (QDRO), which outlines how the funds will be distributed without triggering tax penalties. The court considers the contributions made to these accounts during the marriage and determines the equitable share for each party. Some accounts may require immediate division, while others might involve deferred payments or adjustments to future payouts.
What Is the Impact of Alimony on a High-Asset Divorce?
Alimony is often considered in high-asset divorces to address financial adjustments after divorce. Courts evaluate factors like marriage duration, income, and contributions. If one spouse supported the other’s career or education, alimony may address economic disparities. The amount and duration depend on each party’s financial circumstances and needs.
How Can High-Value Real Estate Be Addressed?
Real estate holdings, including primary residences and investment properties, are significant assets in high-asset divorces. Property values are determined through appraisals, factoring in debts and liabilities. Division options include selling and splitting proceeds, buying out one spouse, or continuing co-ownership, depending on both parties’ financial situations and long-term feasibility.
How Can I Prepare for a High-Asset Divorce?
Preparation is essential for achieving a fair outcome in a high-asset divorce. Gathering financial records, identifying all marital and separate property, and obtaining accurate valuations of assets are key steps. Financial professionals can clarify the scope of your holdings and provide insight into potential outcomes. It is also important to consider the tax implications of property division and alimony. Certain assets may have different tax burdens or future financial implications, which can affect their value in the settlement.
A Piscataway Divorce Lawyer at Thakkar Family Law Can Protect Your Interests During a Divorce
High-asset divorces can be challenging and require careful attention to financial and legal details. Megha R. Thakkar, Esq., an experienced Piscataway divorce lawyer, provides clients with trusted guidance throughout this process. For a free consultation, call the Thakkar Family Law office in Piscataway, New Jersey, at 732-456-7456 or complete our online form. We proudly serve clients in Middlesex County, Somerset County, Mercer County, Union County, and throughout New Jersey.