It wasn’t too long ago that Jeff Bezos and Mackenzie Scott announced that their divorce had been finalized. The sad truth is that divorce is a fairly common ordeal among American couples. Divorce is normally a complicated process because divorce is not only the division of a couple but also of their assets. The matter is further complicated when dealing with a couple with a high net worth.
When Are You Considered Someone of High Net Worth?
Before we can determine whether a divorce needs to be treated as a high net worth divorce, we first must determine whether the individuals involved have a high net worth. Generally speaking, any individual with at least $1 million in cash or assets that can be easily converted into cash is deemed a high net worth individuals.
Lengthy Asset Discovery and Distribution Process
While the presumption is that no two divorce cases are exactly alike, high net worth divorce cases are treated differently because they involve substantial marital property between the couple. As a result, the asset discovery process and the distribution of properties may become too lengthy.
Calculating Support Is More Difficult
The support amount that one member of the couple is entitled to be another point of complication, as this involves both alimony and child support. Additionally, there are also child-related expenses that may not exist in lower-income divorce cases. Children may be enrolled in ivy league schools, boarding schools, or other educational institutions. The same is true for trusts, which are treated differently depending on whether they are revocable or irrevocable.
High-Value Assets Are Involved
It should come naturally that when high-value assets are involved, tensions are likely to rise. There are many assets to be divided such as business interests, stock options, several real estate properties, and more.
What Is the Best Way to Approach a High Net Worth Divorce?
First and foremost, it’s best to hire a valuation expert to track down assets and ascertain their value accurately. It’s not uncommon for divorcees to attempt to hide some of their assets from the distribution process, and some are even able to hide these assets internationally. In this case, you may also need to hire asset discovery experts and forensic accountants.
Next, because this is primarily a matter of law, it’s important to hire professionals like these high net worth divorce lawyers to help you navigate this complicated process. Not only do lawyers completely understand the process, but they are also able to help minimize the tax liabilities and financial losses that a client would incur.
The prospect of divorce is both unsavory and complicated, especially so when it comes to high net worth divorces. While few people will go through such an ordeal, those who might find the information here valuable, especially when high-value assets are difficult to secure and nurture. They are often the life’s work of an individual.