While every divorce is different and comes with its own challenges, there are often many extra obstacles for couples with a high net worth. On top of an emotionally and financially taxing process, high net worth couples usually have higher stakes involved, with more to gain or lose. With more assets involved, divorce proceedings usually last longer and are more contentious.
Here are the top 4 ways that divorce is different with a high net worth couple:
Divorce for a High Net Worth Couple is More Expensive
Naturally, high net worth couples have an increased number of assets to divide, which makes the process more complicated and expensive for the couple and their divorce attorneys. In this situation, it is absolutely crucial to gather and understand all of your financial documents before these proceedings begin. Also, it is smart to gather all documents before you and your spouse start to divide all of your belongings. In order to know what assets to split up, you must be aware of every aspect of your financial situation.
Cost of Child Support is Usually Much Higher and More Challenging to Calculate
The purpose of child support is to meet the financial needs of any children involved in the divorce, which includes emotional, educational, medical, and extracurricular support. Each state has their own laws and guidelines on how child support is calculated based on figures that take into account both to the couple’s combined net income and the number of children being supported.
In situations where the couple’s net income exceeded the maximum (which is usually around $30,000 a month), the court can decide the amount of child support allocated on a case by case basis. For couples with children involved in a high net worth divorce, it is a worthy investment to hire a team of specialists to ensure the calculations are as fair and possible.
Dividing High Value Property and Out of State Assets
It is not unlikely that high net worth couples have assets that carry over to other states or even other countries. For property and business that takes place outside of the state, there are usually additional taxes involved in the divorce process. When dealing with these outside assets, it often requires a lawyer with a significant understanding of these international and high value issues.
Divorce Process is Usually Longer and More Contested
Not surprisingly, divorce cases dealing with a high net worth couple usually very long and drawn out. With so many assets involved, it takes time and effort to fairly divide everything up. Evaluating these assets and deciding if they are separate or marital property takes time and usually ends in a draw out court case that can last up to months or even years.