Concerns Regarding High-Net-Worth Divorces
Divorce is not easy under any circumstances. Kids and money can be two of the factors certain to make divorce difficult. However, high net worth divorce cases can be complicated because spouses typically have to share massive assets. A higher amount of money can cause more problems and, in the words of the old saying.
To prepare for retirement, it’s normal for working-age people to accumulate various investments and assets. Couples generally have double the number of such holdings due to the higher value of their combined pensions. Many divorcing couples are shocked by how complex, and time-consuming the settlement process can be.
High-Asset Divorce Issues
A sizeable financial portfolio, young children who need custody agreements, or extreme wealth that does not have a pre-nuptial contract could bring you to the opposite side of the table with your spouse in divorce talks. Find out more about the most important issues concerning divorces with high assets.
1. Child Custody and Support
If children’s custody is involved in the divorce, the settlement talks could drag on for an extended period. It’s not always easy, and it can be even more complicated when child custody and child support are at stake. Most of the time, if one spouse is not the parent who has control of the child during a divorce, the higher-earning spouse will be responsible for paying child support.
Even in high-asset divorce cases with massive settlements, parents might be able to agree on an agreement that benefits themselves as well as their children. However, you must retain a child support lawyer in Baton Rouge to protect the rights of both you and your child in custody and support talks.
2. Spousal Support or Alimony
The court’s ruling on spousal support ought to consider the earning potential of both parties. If one spouse has a considerable net worth and divorce is finalized. In this scenario, the court can provide substantial spousal support or Alimony, as the previous earnings capacity of the spouse usually indicates the spouse’s future earning capacity.
Each party must have an attorney who can thoroughly review their marriage and provide the most robust case possible before the court. If you ought to learn more about family law and its different aspects, you should consider hiring an attorney.
3. Pre-nuptial and Post-nuptial Agreements
Most divorces involving high-net-worth people are governed by pre-nuptial and post-nuptial agreements. When one or both couples had significant assets before marriage, creating a pre-nuptial or post-nuptial agreement is common to safeguard them in divorce.
It is possible to modify your post-nuptial and pre-nuptial agreement with legal advice. A family law attorney can help you create and enforce the arrangements, as it’s straightforward to be left out on the property and assets you’re legally entitled to if someone is looking out for your best interests.
4. Property Division
A married couple’s assets, income, and debts are all considered to be shared in a community property state. It is crucial, however, that they seek legal advice to protect “separate property,” or assets that one spouse accumulated before marriage. Inheritances, gifts, legal settlements, awards, and profits from selling separate property can all be considered separate property.
5. Business and Investments
During a divorce, several options exist for dividing up investments and businesses. If the business or investment were established or acquired before the marriage, specifically with shared funds, the assets would likely be considered communal property and divided evenly. If a company or investment was owned before marriage or bought with separate finances, it might be considered separate property. That is, its assets could be negotiated.
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