What Is a High-Net-Worth Divorce in Paramus, New Jersey?

In Paramus, New Jersey, a high-net-worth divorce typically involves couples whose combined net worth exceeds a certain threshold. While the exact amount varies, the term generally refers to situations where assets total at least one million dollars or more. These couples typically have substantial income, property holdings, or investments.

How Is Property Divided in a High Net Divorce?

In New Jersey, the equitable distribution law governs how assets are divided during a divorce. The goal is not to divide assets equally but fairly, considering the length of the marriage, the financial and non-financial contributions of both parties, and the overall economic circumstances.

Property division becomes more complicated in high-net-worth divorces due to the variety and scope of assets involved. Real estate, business interests, and investments all require careful valuation. Forensic accountants or financial experts may often be brought in to help determine asset values.

What Types of Assets Are Involved in a High Net Divorce?

High net divorces often involve a wide range of assets beyond the family home:

• Real Estate: Multiple properties may be owned, including vacation homes, rental properties, or commercial real estate.
• Investments: Stocks, bonds, mutual funds, and other securities.
• Retirement Accounts: Pensions, 401(k) accounts, and other retirement savings.
• Business Interests: If one or both parties own a business, its value must be carefully assessed.
• Luxury Items: High-value personal property, such as artwork, jewelry, or boats.

What Is the Role of Alimony in a High-Net-Worth Divorce?

In New Jersey, the court considers various factors when determining whether spousal support should be awarded, such as the length of the marriage, the standard of living during the marriage, and the financial needs of both parties.

Alimony can be a significant issue in high-net-worth divorces, particularly if one spouse has a much higher income or more financial resources than the other. However, the court will also consider the recipient spouse’s ability to support themselves after the divorce. In some cases, high-net-worth divorces may result in long-term or permanent alimony if the financial disparity is large enough.

How Are Business Interests Handled in a High-Net-Worth Divorce?

One of the most complicated aspects of a high-net-worth divorce is when one or both parties own a business. The court must determine the value of the business, whether it should be sold, if one spouse will retain ownership, and how the other spouse will be compensated for their share.

In many high-net-worth divorces, businesses are not liquid assets, so the division may involve creating a buyout agreement or assigning a portion of other assets as compensation. It can also involve using business valuation experts to accurately assess a business’s current and potential future worth.

How Can Hidden Assets Affect a High Net Divorce?

In some high-net divorces, one party may hide assets to avoid sharing them; examples are undeclared income, undisclosed investments, or assets held in offshore accounts. Detecting hidden assets requires a thorough investigation, including forensic accounting and reviewing financial records.

New Jersey courts take allegations of hidden assets seriously. If one party is found to have concealed assets, it can lead to serious consequences, including the possible awarding of a larger share of assets to the other spouse.

What Should I Expect in a High Net Divorce?

Due to the complex financial issues involved, a high-net divorce can be time-consuming and emotionally taxing. Individuals going through a high-net divorce should expect the process to take longer than a standard divorce, as both parties may need to disclose extensive financial information and valuations of assets. Additionally, negotiating settlements for complex assets like businesses, investments, or real estate can require extensive discussion and legal proceedings.

Turn to the Paramus Divorce Lawyers at Torchin Martel Orr LLC for Experienced Legal Guidance

If you are considering a divorce and have substantial assets, the Paramus divorce lawyers at Torchin Martel Orr LLC will help. Call us at 201-971-4866 or submit our online form for information. Located in Paramus, New Jersey, we serve clients in Bergen County, Morris County, Essex County, Hudson County, and the surrounding towns in northern New Jersey.