Divorce is a highly complicated process. It is not only a complex legal process, it also involves your finances and will test your emotions. On top of these things, if you and your spouse are people of high net worth, you will have more to think and worry about aside from the most common divorce issues like child custody. To be considered a high net worth person, you must possess $1 million or more in assets. If you are contemplating a divorce and you or your spouse is a high net worth person, there is a lot to consider, which is why you will need to consult an experienced Maryland divorce or family law attorney with experience in high net worth divorces. Meanwhile, here are some important questions you may have about the legal process:
What assets could be affected in a high net worth divorce?
Entering into a high net worth divorce generally involves certain unique assets that will be subject to the equitable distribution process. Since these assets are unique, you will need to hire a skilled Maryland divorce attorney to make sure that you submit all your relevant financial information correctly, without missing any important detail. Otherwise, you could be subjected to an IRS investigation, which could result in more complications. Some of the assets that will be considered in a high net worth divorce include the following:
- 401ks, retirement accounts, and pension, which are considered marital property
- Most high net worth people are owners of multiple properties like vacation homes. If you are such an owner, that particular property could be part of the equitable distribution process
- By sharing a business with your spouse or running a business on your own, the business might be subject to asset distribution
What options do I have to protect my assets during a high net worth divorce?
The good news is that there are ways to protect yourself during a high net worth divorce. For instance, if you and your spouse are co-owners of a business, a shareholder agreement may be drafted stating both of your interests in the business during a divorce.
If you are not yet married, a prenuptial agreement may be drafted with your spouse that details what will happen with a few of your assets in the event of a divorce. If, on the other hand, you are already married, a postnuptial agreement may be drafted with your spouse, which technically serves a similar purpose, although the document is drafted exclusively after marriage.
Don’t head into your high asset divorce alone. Hiring an experienced attorney will help protect your assets and save you money in the long run. Get started today by scheduling your consultation so we can create a strategy that is unique to your situation.