High Asset Divorces

High asset divorces—commonly called high net worth divorces—are often particularly long processes because of the amount of money and resources involved. If there are children involved, the complications are greater. Handling issues regarding large amounts of money is often a slow, tedious process, and it does not always even end favorably. The situation is also compounded by the great amount of emotional strain involved.

Causes for High Net Worth Divorces

A divorce is considered high asset if both spouses are financially well-endowed. Having such large amounts of money can often cause extra complications because the spouses must decide how to divide it or pass it over to their children. A divorce is considered high net worth under certain conditions, one of which is when one or both of the spouses has a 401(k) or large investments. If one or both of the spouses owns a business or has investments in a business, that would raise the intensity of the divorce process. The stakes are also raised when the couple owns a significant amount of property, whether that is real estate, artwork or other valuable assets.

Due to the change in interest rates and ever-changing market, many people are no longer satisfied with simply investing in a 401(k). Instead, they may choose to divide their wealth into a handful of different arenas. The diversity of investments plays a large factor in the complications of high net worth divorces.

The issues that come into play in high net worth divorces often circulate around alimony, child support, spousal support and prenuptial or postnuptial agreements. The prenuptial agreements (which are decided before the couple is married) and the postnuptial agreements (which can be completed after the marriage) secure each spouse's resources. Prenuptial and postnuptial agreements have become more common as divorce is more common now than in the past. The wording of prenuptial and postnuptial agreements is vital in the divorce process.

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