Brooklyn, NY – Some of the simplest divorces are those where the couple was only married for a short period of time and did not own much property. However, couples that have lots of assets, investments, and shared real estate can be some of the most complex because the property division phase is expensive and time consuming. Anyone who is dealing with a high net worth divorce should protect their interests with an experienced family law attorney in their city.
Divorces can have a number of different consequences on taxation. People with high net worth may want to utilize various tax shelters, or they may have formally created corporations, partnerships, and other legal entities for their business interests. Anyone who is about to get divorced should review their tax situation with an attorney to check for possible issues and oversights.
The property division phase
A judge has some discretion to distribute property in an equitable matter. However, this does not necessarily mean that the property will be divided exactly in half or that each spouse is entitled to what they consider a fair share. Each party’s lawyer will advocate for their interests and try to retain as much as realistically possible. There have been divorce cases among high net worth couples where the property division phase can take years due to things like multiple homes and extensive collections of valuable property. Income must also be disclosed from all sources during this phase, as the courts need to be able to get a clear picture of the couple’s finances.
This is a serious concern for couples that are both older and high net worth. Things like IRAs, 401(K)s, and various other retirement investments may compose a significant portion of a person’s wealth at later stages in life. However, this may also be fair game for the opposing spouse during the property division phase.
Stocks and similar investments
It is likely that high net worth couples will have some money invested in the stock market. There are some general rules that guide division of stocks based on the total number of shares owned, which can be helpful. However, some couples also choose to sell and liquidate stocks during their divorce, and the income from these sales can have tax consequences as well.
Family law firms in Brooklyn
Issues such as divorces, child custody hearings, and support payments for former spouses and children need to be handled with care. Elliot Green Law Offices is a firm that can provide professional advice throughout the course of all of these matters, as well as in court representation if needed.
Firm contact info:
32 Court Street, Suite 404, Brooklyn, NY, 11201