Any divorce can be challenging, but for those who have a high net worth, the complexities of their finances can further complicate matters. It is critical that you hire an attorney with experience in high net worth divorce. Attorney Brian Grady has that experience and has used his financial and legal backgrounds to ensure clients are protected. You should not have to sacrifice the safety net you have worked so hard to build.
Is my divorce a high net worth divorce?
If you or your spouse have over $1 million in assets or $500,000 or more per year in income, you qualify as a high net worth divorce. You may have multiple properties, timeshares, out of state or international assets, shared businesses, or other investments on the line. Your divorce should never wipe out what you have spent years building, so it is essential to have a financially savvy attorney on your side.
What additional considerations are there in a high net worth divorce?
Of course there are the standard issues that come with divorce such as:
- Custody / Allocation of Parental Decision Making,
- Visitation / Allocation of Parenting Time,
- Child Support,
- Property Division,
- Alimony / Maintenance.
However, with a high net worth divorce, there is much more attention that goes into asset division. As the marriage progresses over time, your assets become more and more intertwined, which can make property division more difficult.
The tax implications of asset division in your divorce is a primary reason you will want someone with a financial background. A few of the most common issues are:
- Child tax credits / exemptions – Traditionally, the person with primary custody receives the child tax credit. However, it can also be given to the person with the higher income level. An experienced attorney will be able to ensure you receive what is most financially beneficial to you.
- Filing status – You and your partner cannot file a joint return and will need to adjust your withholdings.
- Liquidation of assets – Liquidation of assets could trigger capital gains tax liability, which we will want to significantly limit.
- Retirement accounts / benefits – There are penalties from accessing money in retirement accounts early and we will want to mitigate those penalties.
- Spousal support – We need to ensure that spousal support is set up in a way that limits the tax liability for you.
As a family law attorney, Brain Grady is able to accurately assess the short and long term implications of asset division in a high net worth divorce and will ensure that your financial future is protected.
What other considerations are there for clients with a high net worth divorce?
There will need to be a thorough valuation of any business in order order to determine the best course of action for the business and both parties. Whether you opt to sell the business, dissolve the business, or do a buyout, you have to know what the business is worth and the tax consequences of those options.
Even when you hire an experienced attorney, you still may need to consult additional professionals, like an accountant, that can investigate and track your partner’s financial holdings. You need to enter into this process with all of the facts about yours and your partner’s finances. Your partner may not be hiding anything, but you want to have a full, detailed understanding of your financial situation.
Aside from consulting additional professionals, you will need to be more patient during your divorce process. You don’t want to rush into any decisions without having a full understanding of how those decisions will affect your financial future. It may actually help to treat this like a business and carefully evaluate all short and long term impacts of all settlement options.
Do not hide your assets. Of course this is unethical and will destroy your credibility when it is discovered. Instead, hire a good divorce attorney who will fight to protect your interests and secure your future.
The Law Office of Brian Grady has handled numerous high net worth divorce cases and has successfully protected the financial future of their clients
During a high net worth divorce, decision making is much more challenging. You have to prepare for potential income, potential expense, ongoing obligations, tax liabilities, and numerous other things.
When you hire an attorney with a financial background, you will have a complete analysis of all avenues you could take and the financial implications of those paths. Contact The Law Office of Brian Grady and your family, finances, and future will be protected.