Marriage can be a rewarding experience for many adults. While a marriage may be founded on love, it can often break apart for a variety of reasons. In some cases, a divorce may be based around financial matters. If a high net-worth individual is getting a divorce, it’s essential to have access to a divorce attorney. The following guide provides simple simple tips and tricks on how to navigate the world of divorce as a high net-worth individual.
When an individual decides to get married, he or she takes a sacred vow that is supposed to last a lifetime. Under ideal conditions, both partners in a relationship will be getting married for the same reasons. However, people may not always get married for the same reasons.
For example, there’s a reason that doctors and other professionals have no problem finding a potential spouse. In many cases, these individuals are considered to be excellent providers. If a relationship is founded on money, it is usually destined for failure.
If possible, it’s a good idea to get a prenuptial agreement before marriage. With a prenuptial agreement, a couple decides on how assets will be split in the event of a divorce. However, it can be challenging to maintain love when money is concerned. If a high net-worth individual wants to get a prenuptial agreement, the other spouse may not want to get married. In addition, these agreements can break the bond of love.
If an individual doesn’t a get a prenuptial agreement, half of his or her earnings after marriage may go to a spouse in the event of a divorce. While assets one obtains before a marriage are usually safe, any assets obtained after a marriage are usually up for grabs. However, it’s important to understand how this can impact one’s assets from before a marriage.
For example, imagine that a high net-worth individual owns a very expensive home. This individual then decides to get married. After 10 years, the marriage starts to fall apart. During this time, the value of the house has appreciated in value 20 percent. The low net-worth spouse is entitled to half of the value that the house has appreciated.
This concept also applies to other types of assets. This can include stocks, bonds, options, valuables, artwork, paintings, intellectual property and much more. Intellectual property can be a very tricky issue. For example, imagine that an individual is an upcoming music artist. At the time of one’s marriage, the artist still hasn’t been able to break out. However, he or she is able to experience success after a marriage.
The low net-worth spouse in this example would be entitled to half of all revenue streams that come from intellectual property created after the marriage started. If an artist becomes very famous, his or her spouse will own half that name. In some cases, courts may award that name to a low income spouse.
In addition, children can complicate the divorce process in several different ways. If a low net-worth spouse receives custody of children, he or she will be entitled to child support payments every month. However, there is no fixed price for child support. For example, a shelf stocker at a supermarket may pay only $150 a week in child support payments. However, an investment banker may pay thousands of dollars every week in child support payments. Since child support payments are often based on an individual’s income, it’s essential to have access to a professional lawyer or attorney.
Albert Myburgh has been serving the 5 boroughs in family law matters for 25 years. He strives to solve legal matters in an efficient, amicable, and successful manner.
2 replies on “The Importance of an Attorney in High Net-Worth Divorces”
Well written. I agree that entering marriage based on money is bad idea. Prenuptial agreements may be an touchy subject but it’s important to guard your financial future.
Great article. While getting an pre-nup and discussing the possibility of divorce with your partner is one extreme, there is another extreme: not getting a lawyer at all. I’ve noticed that sometimes people want to keep it as quiet as possible but doing things on their own. Bad decision!