While any divorce can be inherently difficult, when significant assets are involved, the complexity increases exponentially. High-asset divorces present their own unique challenges and concerns that require careful research, well-conceived negotiations, and specialized legal knowledge to ensure a fair and equitable resolution for both parties.
While high-asset divorces are still subject to the same laws as any other divorce in Charlotte, North Carolina, and couples still need to navigate the same set of issues that any divorcing couple does, the processes, complexities, and time the process takes can look very different. If you and your spouse have extensive assets and are navigating a divorce, you will want the highly-skilled representation of a Charlotte, North Carolina family law attorney with experience in high-net-worth divorces.
What Exactly is a High-Asset Divorce?
Charlotte is known for its growing economy, extensive fintech industry, and affluent neighborhoods. Consequently, divorce between high-net-worth couples is not uncommon.
Couples with more significant net worth can face unique obstacles when navigating a divorce in Charlotte, North Carolina. While there is no exact definition of high net worth in a divorce context, the general rule of thumb is that when one or both spouses earn more than $300,000 annually or more than $25.000 per month, the case is considered high net worth.
High-asset divorces generally involve extensive financial holdings, including real estate, investments, retirement savings, business interests, and other valuable assets. Because North Carolina follows the equitable distribution model of dividing marital property, these divorces necessitate specialized legal understanding and financial expertise in valuing and dividing marital assets fairly. Furthermore, while many divorces experience challenges regarding child custody, child support, and spousal support, high-asset divorces often result in more complexities concerning these issues.
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Commonalities of high-asset Divorces
High-asset couples have many issues to consider during the divorce process. These will include
- Asset identification and valuation
- Extensive real estate holdings
- Investment accounts
- Retirement savings and pensions
- Business interests
- Trusts and other estate planning matters
- Prenuptial and postnuptial terms
- Spousal support
- Child support and custody
- Commingled assets, including inheritances and gifts
Getting the advice and guidance of a highly experienced Charlotte, North Carolina, family law attorney will provide you a better understanding of your options, your legal rights, and how to protect yourself so you can move forward.
A More Complex Asset Portfolio
A high-asset divorce typically involves a wide variety of assets with varying degrees of complexity. Multiple properties, including a primary residence, investment properties, and vacation homes may be involved. Business ownership may be at stake, requiring a detailed valuation and consideration of future earning potential. There are usually significant retirement savings and a diverse range of investment vehicles. These divorces may also involve high-value personal property, such as luxury vehicles, jewelry, collectibles, and artwork. All of these must be considered when establishing equitable distribution in the divorce process.
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Valuation Challenges
Valuing these assets accurately also poses its own set of challenges. To ensure accurate and complete valuations, this often requires the assistance of professionals like real estate appraisers, business valuators, and forensic accountants.
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Complex Income Streams
High-net-worth individuals often have diverse and complex income streams, including investment returns, business profits, and deferred compensation. Because of this, it can be challenging to determine the future earning potential of both parties, especially if income is tied to more volatile industries.
Tax Implications
Division of some of these high-value assets can have significant tax consequences, such as capital gains taxes, retirement account penalties, and taxes on spousal support obligations. Some high-asset divorces may require structured settlements to optimize for these tax implications.
Child Support
While child support is typically calculated based on state guidelines, additional factors must be employed to calculate and negotiate child support when combined gross income exceeds state limits.
Spousal Support (Alimony)
In North Carolina, a dependent spouse who does not have adequate resources of their own can be entitled to spousal support, which will be based on the couple’s higher standard of living.
Marital Misconduct
If there was illicit sexual behavior (infidelity) or other marital misconduct present during the marriage, it can bar the dependent spouse from an award of alimony. Conversely, alimony will more likely be awarded to the dependent spouse if the supporting spouse engaged in the affair or misconduct.
Greater Likelihood of Hidden Assets
Suspicions and disputes often arise in high-asset divorces over underreported income or hidden assets. Investigations by forensic accountants and private investigators may be required to ensure that both parties’ financial disclosures are comprehensive and accurate.
Additional Legal and Financial Strategies
High-asset couples often utilize legal and financial strategies such as prenuptial agreements, postnuptial agreements, and trusts to protect assets in the event of a divorce.
Privacy Concerns
High-net-worth couples are often concerned with privacy during a divorce proceeding and may ask for confidentiality agreements or request that disputes be negotiated outside the public courtroom setting.
Child Custody and Visitation
The higher mobility and travel associated with more advanced wealth can complicate custody and visitation schedules. Consequently, a high-asset divorce often involves disputes concerning the custody and visitation of the couple’s children.
Unfortunately, given the high stakes involved, high-asset divorces can become particularly contentious. Often, each spouse comes to the table with a team of accountants, financial advisors and attorneys to protect their interests. This can prolong negotiations and increase legal costs.
What to Look For When Hiring an Attorney For a High-Asset Divorce
From accurately valuing complex assets to ensuring full financial disclosure to navigating complicated tax implications, every step of a high-asset divorce will demand astute consideration and experienced guidance to address the unique challenges it can present. Furthermore, these divorces can be very contentious and spouses often don’t fight fair when the stakes are so high. This underscores the importance of securing the right legal representation to protect your assets, privacy, and your future well-being.
If you are navigating a high-asset divorce, the experienced Charlotte, North Carolina family law attorneys at Melone Hatley, P.C. are here to protect your rights every step of the way. Call us at (980) 400-9847, or use our website contact form to schedule a free consultation.
Schedule a call with one of our client services coordinators today.
