The term ‘High Net Worth Divorce’ is thrown around a lot, especially in the news, as we see NYC’s elite finding themselves in the midst of messy divorces. But a high net worth divorce doesn’t only correlate to the “1%”. Typically, “high net worth divorce” referred to a divorce that involved more than one million dollars ($1,000,000+) in liquid assets (an asset that is cash in hand, or an asset that can be readily converted to cash).
If you are considered a High Net Worth person, matching the qualifications above, you will likely have what is considered a High Net Worth Divorce. The real differentiating factors are, obviously, in the monetary realms, such as the distribution of assets (remember that New York is an equitable distribution state, meaning spouses in a divorce are recognized as having an equal interest in all marital property), alimony, and child support payments.
NYC divorce lawyer Paul Eric Rudder, Esq. has a successful history representing high net-worth individuals, as we understand that a high-net-worth divorce will come with unique obstacles, which are directly correlated to the knowledge, valuation, and ultimate distribution of these valuable assets. We know that our clients have worked hard to accumulate this substantial wealth, and therefore have so much more to lose. High-net-worth individuals require an attorney with experience winning these types of cases, to reduce the risk of losing their hard-earned fortune, and relieving the stress of the process, as we quickly identify and protect these main asset targets:
- Ownership stakes in businesses
- Inheritances
- Retirement funds
- Trusts
- Bank accounts
An important thing to keep in mind is that not everything is subject to division, as New York State does recognize the difference between separate property and marital property (see our article on The Difference Between Separate and Marital Property). High net worth when there are children involved plays a role in deciding the amount of child support that will be awarded, as well as alimony, so it is important to be properly represented to ensure that the calculation for these awards is proper and fair.