Why are High Net Worth Divorces so Tricky?

Divorces are often a challenge for all couples, but things can get even trickier for high net worth couples. The reason these cases are often tricky is that one or both individuals that were married are bringing in large sums of money. There may be special considerations that would need to be reviewed, including any prenuptial agreements that were created and signed before both parties exchanged vows and got married.

Reviewing the Prenuptial Agreement

Most people with a high net worth will have a prenuptial agreement drawn up before they get married. The purpose of the agreement is to protect their finances and assets in the event of a divorce. Before figuring out who gets what after the divorce, the prenuptial agreement must be carefully examined by the attorneys for both parties. Certain things may have been agreed upon in advance, including alimony support payments that one person will receive from the other person after the divorce. The ownership of different assets may have been mentioned in the prenuptial agreement, too.

Going Through Investments and Assets

If there is no prenuptial agreement or if investments were made and assets were acquired during the marriage instead of before it, the attorneys would need to work with their clients to compose a list of the investments and assets that exist. While most people have a few investments and assets, those with a high net worth may have dozens of investments and hundreds of assets that would need to get sorted through during the divorce proceedings. Because those who make more money tend to own more property and valuable items, it can take more time for the attorneys to get through everything and then handle the separation of these properties and other assets that were owned by the couple.

Figuring Out Spousal Support Numbers

When spousal support was not mentioned in the prenuptial agreement, one person from the marriage may want to seek spousal support from their former partner. As an example, if the father of the children was the breadwinner in the household and the mother stayed at home with the children to raise them, the mother of the children may then request spousal support because she does not have the kind of income that her husband was making. The same thing goes for a woman bringing in a high income with a stay-at-home husband and father. The stay-at-home father may request spousal support from his ex-wife.

Can you imagine what would happen if you were unable to make decisions for yourself? If something like this happens when you get older because of a condition that you are diagnosed with, you would want to have a power of attorney that could make important decisions for you. Just like when you choose a trustee to handle some of your accounts and assets, you should carefully choose the right person to act as your power of attorney. It should be a person whom can depend on and trust. The person would then have the right to act on your behalf when making different decisions pertaining to you, your finances, and your assets.

As the power of attorney, the person you select will get to make decisions for you when you cannot do so on your own. Before choosing a power of attorney, you should let the person know about your take on important decisions that may arise at some point in the future. You want to make sure that your power of attorney understand what you want and prefer, even when you are unable to make that clear because of your condition in the future.

Want to Protect Your Assets in the Future? Speak with the Attorneys at Giro Law

After working hard for what you have, it is only right to want to protect your assets now and in the future. There are different ways for you to get the protection that you need and desire. If you would like to have a trust or choose a power of attorney, contact Giro Law today at 201-690-1642 to discuss the options that are available to you. Get the quality legal assistance that you deserve.