A high net worth individual is typically considered to be someone who owns $1 million or more in liquid assets. Many high net worth individuals have this money in a form that can be quickly converted into cash such as a savings account, stocks, bonds, and/or a certificate of deposit.
When one or both parties in a marriage is a high net worth individual, and they are approaching a divorce, they should be aware that their divorce may not follow the traditional process. This is due to the numerous assets that will need to be settled. It is a great reminder to take the necessary steps to protect assets including a consultation with an experienced divorce attorney. For those that find themselves in this situation, we have outlined a few of the ways a high net worth divorce can differ from a traditional divorce:
One very important topic during a divorce is alimony. Alimony serves as a means to help a party meet their reasonable needs when their income and the assets awarded in equitable distribution are insufficient to meet those reasonable needs. It is not an easy topic no matter what side one is on.
We understand the stress alimony may cause someone going through a divorce because alimony can affect one’s financial landscape for years to come. Due to the possible financial repercussions, one should ensure they have the best representation to support them through the process. An experienced divorce attorney is key, in addition to keeping these tips in mind:
Life after divorce is a lot like starting over, or at least it can feel that way. It can be a scary feeling knowing that new things are ahead – or it can be looked at as an exciting, new beginning. Either way, a part of this starting over period includes the topic of finances, which may include readjusting budgets, rebuilding a savings account, or planning on big purchases ahead such as a new home.
Finances are complicated and can be a burden when going through a divorce as well as after the divorce is final. One way to avoid financial issues due to a divorce is to have an experienced divorce attorney by one’s side during the divorce process. The experienced attorney will look out for one’s best interests which most definitely will include their finances. In addition to consulting with a divorce attorney, the below tips can help one avoid letting finances get the best of them and can help them recover financially from a divorce:
When going through a divorce, it can be easy to get caught up in all of the stress and chaos that may accompany the process. From the appointments to the packing and moving and especially the child custody concerns, it may feel near impossible to take “me” time or to step back and get centered.
When one’s challenges push them off balance, such as challenges related to divorce, it can take a toll on their mental and physical state. It is very important to be mindful and have a reference point or a place to come back to when in this situation, and while it may seem unreachable during all the chaos, it is possible. Remember that by taking care of oneself first, that person can better take care of those around them, such as their children. For those in this situation, we put together a few tips to help one be mindful during their divorce:
When one approaches a high net worth divorce, they often experience the normal complexities of divorce along with additional hurdles such as a more extensive list of assets, complicated business ties, valuations concerns, etc. This often leads those going through a high net worth divorce to be stressed and overly protective of their finances.
Regular divorces are stressful enough let alone one with these additional hurdles. To help ensure one has the right support and makes the right moves in their divorce process, we encourage them to reach out to a divorce attorney who is experienced in high net worth cases. In the meantime, following this list of do’s and don’ts can help to stay on the right track:
When parents go through the divorce process, some may not think through what parenting with their ex will be like once the divorce is final or they may have assumptions about it. Co-parenting brings on a whole new relationship and situation to navigate. While some parents find that co-parenting with their ex is easier than parenting when they were married, others may find that it is harder since they would rather not have to be in contact with their ex at all.
Co-parenting can be a challenge at times; however, with the right mindset, parents can approach the situation positively and set themselves, their children, and even their ex up for success. One way to help divorced parents approach co-parenting is to discuss a few misconceptions that each side may have. Below are a few of these fallacies that, if avoided, can help the process go smoothly:
When one spouse knows that a divorce is the right thing for their marriage, approaching the other spouse can be dreadful. It is true that the feelings are largely dependent upon the reason for the divorce, but in many cases, those feelings are uneasy and stressful regardless of the reason why.
To help prevent chaos when one is communicating the need for a divorce to their spouse, they must take into consideration their spouse’s feelings and needs. Doing this can help the communication between the spouses and can ultimately help the divorce process. If you are approaching a divorce, below are some tips for bringing up the topic of divorce with your spouse:
Going through a divorce is not an easy journey. One way it is made even more complicated is when children are involved. Most parents naturally want the best for their children but face a conflict when they must give up some of their precious time with their children due to a divorce or a custody proceeding. Consequently, this can be one of the reasons for a custody battle.
We cannot stress enough that leaning on an experienced divorce attorney when approaching a custody case is one of the most important things that a parent can do along with keeping the children’s best interests in mind. Ensuring one has the right attorney can make a world of difference in the result of their case. In addition to having the right representation, following the below tips can also help:
Nearly 50 percent of all marriages in the United States end in divorce or separation. Even if couples are aware of this statistic, many of them still do not think a divorce could happen to them. Whether or not a couple expects to be confronted with a divorce or not, it is wise to think through the “what ifs” of a marriage. What would you do if you were faced with a divorce? What would happen to your finances? Who would get the house? What part of the family business would you receive, if any?
Since many marriages end in divorce, the topic of prenuptial agreements, while not an enjoyable subject to discuss, is an important one that can bring clarity to financial issues should a divorce occur. There are many misconceptions about prenuptial agreements, and to help you make an educated decision on whether a prenup is right for you and your marriage, we listed a few of those myths below:
When someone approaches divorce, they may immediately picture themselves in a court setting with their divorce attorney by their side, the judge in front of them, expensive fees being taken out of their bank account, and a difficult spouse on the other side of the room. This picture is what we see in movies, and while some aspects of it can occasionally be true in some cases, it is not the norm.
There are options when it comes to the divorce process, and finding which option best suits a divorcing couple greatly depends on the situation, the relationship between the spouses, and what circumstances are at hand. Before deciding on a process, we recommend consulting with an experienced divorce attorney who is well-versed in many different divorce processes so they can give the divorcing individual an expert opinion on which process may work best for the situation. If you find yourself in this situation, we outlined the most popular divorce processes below to help give you an idea of what may work best for you: