Scott Fitzgerald famously stated that “the rich are different from you and me”, to which Ernest Hemingway responded “Yes, they have more money.” Clearly, they were both stating the obvious. It is also true that couples who are “rich” (have a high net worth or a high income) usually have different concerns when they are going through a divorce.
Here, are a couple of ways that the high net worth divorces are different:
- Complex Compensation Packages: Many high-net-worth individuals have complex compensation contracts. For example, in addition to their base salary, they may earn various stocks or percentages of a company. In these situations, it is important to identify all the income streams that are available to each of the spouses.
- Complex Tax Considerations: High wage earners and high net worth spouses typically have complicated tax considerations. The selling of assets may trigger capital gains. For high net worth individuals, it is extremely important that the divorce attorney work with an accountant to make sure that potential tax obligations are considered in any divorce settlement.
- Child Support and Spousal Maintenance: Typically, in a high net worth divorce, one spouse will be the high wage earner. The standard child support and spousal maintenance (alimony) formulas may not result in a fair and equitable solution for high net worth divorces. The divorce attorney must be able to demonstrate that in a high net worth divorce, that the standard formulas do not adequately compensate the spouse who earns less money.
- Financial Advisors: In a high net worth divorce both spouses should obtain their own independent financial advisor. The spouse who is not the high wage earner may need a financial advisor to assist him/her in managing the amount of money or assets that they will be receiving in the divorce. The high wage earning spouse will want their financial advisor to assist him/her in handling the reduction in their financial portfolio.
David Badanes, Esq. and the Badanes Law Office have the experience you need in handling your high net worth divorce. To discuss your situation, contact them at: (phone) 631-239-1702 or email at email@example.com. The Badanes Law Office has offices in Northport and Uniondale.
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