Divorce is difficult under any conditions. Money and kids are two things that are sure to make your divorce hard. However, high net worth divorce cases are complicated because spouses must typically share extensive assets. More money means more difficulties, as the phrase goes.
In preparation for retirement, it is common for people of working age to acquire a variety of investments and assets; married people often have twice as many such holdings due to the increased value of their combined pensions. Many divorcing couples are taken aback by how difficult and time-consuming the settlement process can be.
High-Asset Divorce Issues
A substantial financial portfolio, young children who need custody agreements, or extreme wealth without a pre-nuptial agreement are all issues that will put you on opposing sides of the table from your divorcing spouse during divorce discussions. Read on to learn about the most crucial concerns in high-asset divorces.
1. Child Custody and Support
If children are involved in the divorce, settlement talks could drag on for a long time. Setting up child custody isn’t always easy, and when child custody and child support are involved, it can be even more challenging. Most of the time, if one spouse is not the custodial parent in a divorce, the higher-earning spouse will be responsible for paying child support.
Even in high-asset divorce cases with huge settlements, parents may be able to agree on an agreement that benefits themselves and their children. However, you should still employ family lawyers in Baton Rouge to safeguard your and your child’s rights in custody and support talks.
2. Spousal Support or Alimony
The court’s spousal support ruling ought to take the earning potential of both parties into account. Suppose one spouse has a substantial net worth, and the divorce is finalized. In that case, the court may award substantial spousal support or alimony payments since the spouse’s past earning capacity usually indicates the spouse’s future earning capacity. Both parties must have attorneys who can thoroughly examine their marriage and offer the most robust case possible in court, and can also employ the services of custody lawyers in Baton Rouge.
3. Pre-nuptial and Post-nuptial Agreements
Divorces involving high-net-worth individuals typically involve the use of pre-nuptial and postnuptial agreements. When one or both parties had considerable assets before the marriage, it’s typical to establish a pre-nuptial or postnuptial agreement to protect them in case of divorce.
You may be able to modify your pre-nuptial or postnuptial agreement with the help of legal counsel. An attorney can help you form and enforce agreements suck as marriage in community of property, as it’s simple to miss out on assets and property to which you are legally entitled if you don’t have a lawyer looking out for your interests.
4. Property Division
In a community property state, a married couple’s assets, income, and debts are all viewed as shared. It is critical, however, to get legal counsel to safeguard “separate property,” or assets that one spouse accumulated before the marriage. Gifts, inheritances, legal awards and settlements, and the proceeds from the sale of separate property can all be considered separate property.
5. Business and Investments
During a divorce, several options exist for dividing up businesses and investments. If the business or investment was created or acquired during the marriage, especially with shared funds, its assets are likely to be designated community property and will be divided evenly. When a business or investment was owned before a marriage or purchased with separate finances, it may be considered separate property, meaning its assets and funds may be negotiated.