Divorce is a difficult experience under any circumstances, but it’s especially complicated when a couple has extensive high-value assets to divide between them. An experienced divorce attorney can help you through this challenging process and safeguard what matters most.
LaFountain & Wollman, P.C., is a firm offering comprehensive family law services in Middlesex County and the greater Boston area. We provide personalized and detail-oriented representation in divorce cases like yours. Contact us today for an initial consultation to discuss your case.
What Is a High Net Worth Divorce?
A high net worth divorce is the same as any other divorce in most respects. Just as with any other divorce, you and your spouse must resolve such critical issues as:
- Child custody
- Visitation
- Spousal support
- Division of marital property
What makes a high net worth divorce different is that the couple has high-value assets, typically valued at upwards of $1 million. The higher value of these assets, along with their financial complexity, is what makes high net worth divorces so complicated.
High-Value Assets
High-value assets that must be divided in a high net worth divorce might include:
- 401(k)s
- Pensions and other benefits
- Vacation homes
- Rental properties
- Other real estate
- Businesses
- Stock options
- Investment portfolios
- Trusts
- Art and antiques
The complexity of these assets makes the division of marital property a challenging proposition in a high net worth divorce. In addition, there are emotional factors to consider. For instance, your spouse may be particularly attached to a certain piece of art, while you may want to hold onto a vacation property because of the memories you’ve built there. These are issues you’ll have to negotiate and settle with your spouse.
Equitable Division
Massachusetts divorce courts follow a principle called “equitable division,” meaning that the property will be divided in a way that the court considers fair under the circumstances. This does not necessarily mean an equal division. Massachusetts divorce law gives the court the right to award either party:
- Alimony or spousal support payments
- Part of the other partner’s estate
In other words, the court has the sole authority to determine who gets what unless the couple has already agreed on a settlement approved by the court. The court’s decision is based on a number of different factors, including:
- How long the marriage lasted
- How the parties conducted themselves during the marriage
- The age, health, station, and occupation of both parties
- The amount and sources of income available to both parties
- The vocational skills and employability of both spouses
- The liabilities and needs of both spouses
- The financial opportunities available to both partners
- Whether the court has awarded alimony to either partner
- The contribution each partner made in acquiring or preserving the marital assets or helping them appreciate in value
- The spouses’ contributions to the household
- The present and future needs of any dependent children
Fault or No-Fault
Under Massachusetts law, you have the option of filing a no-fault divorce if you don’t want to have to prove any wrongdoing on the part of your spouse. In a no-fault divorce, you only need to assert that the marriage has broken down and cannot be repaired.
However, you also have the option of filing a divorce in which you allege some fault, such as adultery, abandonment, or abuse. In a fault-based divorce, you will have to prove your allegations in court.
Is Your Spouse Hiding Assets?
In some divorces, one spouse may try to hide assets from the other. The complexity of certain assets in these cases can make them easier to conceal, especially if one spouse has little association with specific assets. Typical concealment strategies include:
- Transferring assets to a different account
- Transferring assets to a friend
- Asking an employer to delay a commission or a pending raise
Hiding assets in a divorce case is always a mistake. It is perjury if you lie to the court, and the judge is unlikely to look kindly on such actions. Hiding assets can end up being an expensive mistake.
Avoiding Expensive Mistakes
A divorce attorney can help you avoid expensive mistakes. And with an attorney’s help, you can also draft a prenuptial agreement to make any future divorce as straightforward as possible.
A skilled attorney can also help you understand some of the tax implications of decisions you make in the divorce. You don’t want to agree to a particular plan for the division of property without knowing how it will affect your taxes.
How a Middlesex County Divorce Lawyer Can Help
Working with a divorce lawyer is the best investment you can make as you begin this process. A lawyer experienced in divorce cases in Massachusetts can help by:
- Negotiating on your behalf
- Fighting to protect your rights and interests
- Making sure the final settlement protects your financial stability
LaFountain & Wollman, P.C., is a divorce law firm serving Middlesex County, Massachusetts and surrounding communities. We will provide the guidance and support you need to get you through this challenging time in your life. Contact us today to discuss your high net worth divorce case in a confidential consultation.