High Net Worth Divorce

What To Consider in High Net Worth (and other) Divorce Cases

As a divorce attorney, trained mediator, collaborative law practitioner, and family lawyer that has found himself dealing with a significant volume of divorce cases across the years, Mr. Darren M. Shapiro knows, as well as anyone, the tension and frustration a divorce can cause. Regardless of the circumstances, all divorces result in various factors that must be carefully considered by each party – from how to share assets to arrangements for child custody and parenting time or visitation. While Mr. Shapiro can help his clients to understand the nuances of parenting time, maintenance (alimony), and other divorce matters, it’s worth noting that in high net worth cases, the issues can seem more intense as the stakes are often higher.

Dealing with a high net worth divorce case is very similar to managing the various considerations of any divorce. However, in high net worth cases, unique instances can present themselves that might be less common in other cases. In any divorce, Mr. Shapiro knows that the parties he is working with will be feeling a wide range of emotions, from disappointment and sadness, to anger. Because feelings are running rampant, it often feels as though divorce is the worst time to make long-lasting financial decisions, however such an action is crucial for each party to move forward. In high net worth cases, Darren Shapiro reminds his clients that it’s important not to rush just to get it over with, so to speak, even if a quick resolution seems to be for the best. All matters must be considered carefully, and with the utmost care.

Mr. Shapiro advises people in any matter, to avoid attempting to represent themselves, and in particular with a high net worth divorce case. The legal term for this is going “pro-se”. It’s important to remember that during a divorce, you have certain interests to protect, and the other party may disagree with issues that you consider important. Mr. Shapiro also advises against bypassing review attorneys during the process of mediation, as the role of a mediator is not necessarily to provide legal advice, so much as help to come to a consensus to create an agreement. However, regardless of whether your divorce case deals with high net worth, or otherwise, it is never advisable to proceed without at least some legal advice, even if it is uncontested and not contentious.

Typically, the process of collaborative law can be particularly useful during high net worth divorces, as teams of professionals come together to help manage the process. Aside from Mr. Shapiro, you would usually have access to a neutral financial professional, mental health experts, child specialists, and any other individuals deemed necessary. However, keep in mind that collaborative law is similar to mediation, though collaborative law is something in between mediation and litigation, in that both parties must agree to participate. Clients may also utilize various experts in other forms of divorce procedures. For instance, in litigated cases with issues pertaining to custody, forensic reports and investigations may be ordered by the court, requiring the assistance of a neutral psychological expert. Accessing the right knowledge is an important factor in ensuring a well-informed and successful result in any divorce case – high net worth or otherwise.

Mr. Darren Shapiro frequently informs his clients that in a high net worth situation, it’s important to utilize the correct tools and prepare yourself with adequate knowledge. For instance, examinations before trial, subpoenas, financial discovery, motions for pedente lite relief, settlement conferences, and depositions can all be used during a litigated proceeding to help gather knowledge. At trial this information can be used to help courts understand your side of the story for the situation under scrutiny. On the other hand, in cases of mediation and collaborative divorce, disclosing information such as this needs to happen voluntarily. The parties involved must readily supply details and documents of their financial story.

Regardless of which procedure you consider best for dealing with your divorce case, it’s important to realize that the proper valuation of assets will always be an important matter. Through accessing experts to assess value, clients should find it easier to discuss equitable distribution. In many cases of high net worth divorce, the parties involved could be dealing with assets that are linked to a company and or business. In these circumstances, Mr. Shapiro reminds his clients that having an accurate assessment of the business value can help to ensure that the settlements given are properly aligned to the entitlement of each individual. After all, some spouses may attempt to hide the true value of their income or assets to avoid paying out extra money in support, whereas others might hurt themselves by over-valuing their assets. At the same time, there will be numerous tax implications to consider, making consultations with financial and tax professionals, which is important to anyone, more vital in issues involving high net worth.

Just like any other form of divorce, high net worth cases will require the court to consider any needs that children or spouses may have after the divorce. Sometimes, child support, maintenance, and orders about responsibility for expenses are required during an ongoing cases, in the form of pendente lite relief. During the process of a high net worth divorce, the court will need to determine maintenance payments, if any, if one of the parties makes a motion requesting it. For instance, though the typical income cap of $175,000 for the payor spouse will apply to maintenance pursuant to divorce cases according to the law that was enacted in 2015. The court may decide to order additional payments if factors outlined in the statute allow for this. What’s more, the court may be likelier to order additional child support, depending on the circumstances and arguments for or against, for a child with parents for the combined parental income in excess of $141,000.00 (this is the 2015 threshold amount which changes over time) during high net worth cases.

Regardless of the type of divorce you’re facing, it’s crucial to ensure you have the right guidance at hand to help you move through the case as painlessly as possible. Remember to avoid sharing details on social media, and consider a confidentiality agreement while the divorce is ongoing. For more information about high net worth divorces, typical divorces, or other matters regarding family law, please reach out to us. If you are interested in accessing Mr. Darren Shapiro’s legal guidance, please call for your free initial consultation and let us know what we can offer you. It would be our pleasure to speak with you.