As a business owner, divorce can have serious implications on the enterprise you’ve built and made successful. That being said, preparing yourself to navigate a high-net-worth divorce is crucial, as the process can become increasingly intricate when dealing with significant financial holdings during property division. Divorces involving high-net-worth couples differ from traditional divorces, as they involve higher income brackets and multiple valuable assets. As such, it can be difficult for these couples to reach an agreement regarding the terms that will apply to the termination of their marriage. If you’re currently facing a high-net-worth divorce, it is in your best interest to contact a skilled Suffolk County High-income Divorce Attorney who can help you safeguard your business’s interests.
What is a high-net-worth divorce?
A divorce involving high-income individuals may present similar issues as a traditional divorce. However, while no exact threshold qualifies a couple as high-income, those with significant net liquid assets, such as $1 million or several million, may fall into this category. These assets include business ventures, professional practices, or residential and commercial properties. It’s imperative to note that the definition of a high-net-worth divorce has evolved from previous years, as a million dollars is not what it used to be. Today, these divorces usually involve multiple millions of dollars. Consequently, high-net-worth couples face unique challenges when it comes to the valuation and distribution of marital assets.
How can I protect my business during a high-net-worth divorce?
When high-income individuals face divorce, they often worry about its impact on their business. Fortunately, there are various approaches that business owners can utilize to shield their business from the consequences of a high-net-worth divorce.
Firstly, high-income individuals should consider creating a martial agreement. Before getting married, you can draft a prenuptial agreement stipulating the property stake of each spouse in the business. You can specify whether the property is separate or marital and how it will be divided in a divorce. This will protect your ownership share and mitigate the risk of future conflicts and lengthy legal battles. If you didn’t draft a prenuptial agreement before getting married, you could still establish a postnuptial agreement, as it functions the same as a prenuptial agreement.
Even if you didn’t create a marital agreement, you can still reduce the impact of divorce on your business. Apart from a marital agreement, you can create ownership shares, buyout agreements, or other formal agreements based on fair value among the business owners. You could also create a business succession plan for your closely held enterprise, as it will ensure the long-term stability of your business. You can turn to a collaborative divorce or mediation if you don’t create a formal agreement or business succession plan. Through these alternative dispute resolution divorce routes, an impartial third-party mediator or attorney can help you and your former spouse work towards reaching a mutually beneficial agreement while safeguarding your business.
High-net-worth divorces are complicated as they involve high stakes. With so much on the line, retaining an experienced attorney from The Law Offices of Susan A. Kassel, P.C. is in your best interest. Our firm is prepared to help you protect your hard-earned assets and your business’s interests.