The Importance Of Being Well Legally Represented When You're Wealthy And Filing For Divorce
Posted on: 10 April 2015
Divorces have both financial and emotional consequences on the lives of the different parties engaged in such legal procedures. This is true even if the two married individuals have agreed to end their union in the most peaceful way. In such a situation, the legal separation doesn't take long and can be pronounced within a few months. Yet, things are a bit different when one of the spouses is affluent. If this is your case, then reading this blog will help you understand why you need to hire a lawyer who has a deep understanding of the divorce laws governing your state.
Understanding why high-net worth divorces are so complex
The complexity of high-net worth divorces stems from the fact they not only feature the challenges of "simple" divorces, such as legal guardianship, but also other issues, including the distribution of the wealth accumulated during the marriage years.
Unlike the other types of divorces, high-net worth divorces aren't subject to the standard guidelines that are used to calculate the level of child support that one spouse must give to their soon-to-be ex. However, this isn't the only point of distinction high-net worth divorces with "simple" legal separations. Indeed, the former obligates the court to apply an asset division method so that each spouse may receive some marital property. As you might know, there are two types of asset distribution methods:
- Communion property
- Equitable distribution
In the first method, the judge splits the marital property in two, and gives each spouse one half. On the other hand, states that apply the equitable division method focus more on the fairness aspect of the distribution. This means that if you're living in an equitable division state, you'll be required to transfer more than half of your wealth to your ex, including your IRA, 401(k), etc.
Before deciding which specific percentage your ex must receive, the judge will consider a number of things, such as the length of the marriage, and the amount of wealth each spouse brought into the marital union.
Your divorce lawyer will negotiate a property division agreement
Unless you're willing to go through a trial where the asset division percentage will be entirely decided by the judge, hire a knowledgeable divorce attorney who will negotiate a property division agreement with the other party. This route is not only less expensive than the one mentioned above, but also more efficient.
Being well legally represented will enable you to minimize the fees associated to a divorce procedure, but also the percentage of property that you'll be transferring to your ex.
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