Divorce is rarely simple, but when a divorce involves substantial assets, it’s even more of a challenge. When going through a divorce in Newburgh, NY, you’ll need a high-asset divorce attorney who understands your unique circumstances and can help you navigate this special situation. As an experienced family law firm, we’re here to guide you through the key points wealthy couples need to consider when entering into divorce proceedings.
Advice From a High-Asset Divorce Attorney: Six Legal Considerations for High-Asset Divorces in Newburgh, NY
1. Marital Property vs. Separate Property
The first thing to consider and understand is the distinction between marital property and separate property. Any assets inherited or attained before the marriage are considered separate property and belong to the individual. These assets aren’t subject to division. In contrast, marital property belongs to you and your spouse and includes anything earned or acquired during the marriage.
Any separate property used for marital purposes or that is commingled makes the situation more complex. This can include assets such as a personal bank account to which you added your spouse’s name or inherited stock placed into a joint investment account. Protecting these assets may require technical legal strategies and a specialist to trace the assets back to their origin.
2. Equitable Distribution Laws
New York’s equitable distribution laws concern marital property rather than separate property. All marital assets are subject to fair distribution between the parties but are not necessarily divided equally. A court will decide what’s considered fair after considering several factors, including the length of the marriage, the future financial needs of each spouse, and the financial contribution each has made.
3. Valuation of Complex Assets
The valuation of some assets, such as real estate and stock options, may be quite straightforward. However, businesses, investments, antiques, art, and other such assets are more difficult to value. Be prepared to employ the services of appraisers, forensic accountants, and other financial experts to assess and value any complex assets.
4. Potential Tax Implications
High-asset divorces come with potential tax implications when selling, transferring, and distributing property. Careful planning prior to the settlement could help ease the tax burden on both parties during and after divorce proceedings.
5. Prenuptial Agreements
It’s common for wealthy couples to have pre- or postnuptial agreements to protect valuable assets by documenting how property, spousal support, and other financial matters should be settled in the case of divorce. Enforcing these legally binding contracts can aid proceedings and ensure the divorce progresses smoothly.
6. Spousal Support
When one partner earns substantially less than the other, a New York judge may award alimony, otherwise known as spousal support. The amount of alimony to be paid will be decided by considering factors, including the length of the marriage, potential future earnings, financial contribution to the marriage, and gaps in income.
There’s much to consider when dealing with high-asset divorces in Newburgh, so they require careful planning. Hiring an experienced family law attorney who understands the unique challenges affluent couples face can help protect your interests. Contact Claudio & Associates, Attorneys at Law in Queens, NY to schedule a consultation today, and let us ensure you receive a fair settlement.
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