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Misconceptions about a high net-worth divorce

On Behalf of | Jun 7, 2024 | Divorce

High net-worth divorces often come with unique challenges and misconceptions. Understanding these misconceptions can help you navigate the process more effectively.

Myth: High net-worth divorces always turn contentious

Many people believe high net-worth divorces always turn contentious. While significant assets can complicate the process, not all high net-worth divorces become adversarial. With the right approach and legal guidance, many couples reach amicable agreements.

Myth: Asset division always follows a 50/50 split

New York follows equitable distribution laws. These laws mean that assets are divided fairly but not necessarily equally. The court considers factors like the length of the marriage, the income and property of each spouse, and each spouse’s contributions to the marriage. This approach ensures a fair outcome, which may not always result in a 50/50 split.

Myth: Hidden assets are easy to conceal

Hiding assets during a divorce breaks the law and can bring severe consequences. Forensic accountants conduct thorough investigations, which make it challenging to hide wealth. Courts take asset disclosure seriously and impose penalties for hiding assets. Penalties may include fines and unfavorable settlements.

Myth: Prenuptial agreements provide absolute protection

While prenuptial agreements offer a clear framework for asset division, they do not always provide absolute protection. Courts can invalidate prenuptial agreements for reasons such as coercion, lack of full disclosure, or unfair terms. Ensure proper drafting and review by both parties to avoid potential issues.

Myth: High net-worth individuals always pay alimony

Spousal support, or alimony, depends on the financial needs and earning capacities of both spouses. While high net-worth individuals may have a higher capacity to pay, the court considers factors like the standard of living during the marriage and the length of the marriage. Spousal support does not automatically increase just because one spouse has significant assets.

Navigating the challenges of high net-worth divorces

High net-worth divorces come with unique challenges and misconceptions. Approach a high net-worth divorce with a clear understanding of your financial situation and the legal landscape to help make the situation easier to handle.

 

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