The term high-net-worth individual (HWNI) is a financial classification describing someone who typically has between $1 million and $5 million in liquid financial assets (money held in banks or brokerage accounts). When at least one of the spouses has over $1 million in liquid assets and is involved in a divorce, then it is considered a high net worth divorce.
Liquid assets can be easily converted into cash, like stocks and bonds. They also include certificates of deposit money in savings accounts.
However, tangible assets that do not fall under this category and will need to be discovered, valued, and divided in case of a divorce, include:
If you are getting divorced, you must be concerned about the status of your assets. If you are involved in a divorce as a high net individual, there is an important question that you might have moving forward:
Outside of all the typical divorce issues, high net worth divorces impact various other aspects of your finances. Furthermore, the courts will thoroughly examine your and your spouse’s financial records to set a clear picture of how your marriage works financially. You may be subjected to an IRS investigation if you incorrectly submit relevant information.
Several assets that may come into question in a high asset divorce are:
Furthermore, issues frequently arise in high net worth divorce cases concerning commingled assets. When separate and community property have been mixed, it can become more challenging to determine how the property should be categorized and whether it should be subject to division.
The high net divorce lawyer at The Law Offices of Sean M. Cleary recognizes the impact a divorce can have on your life, or your children's. Going through such an event can be an emotional and stressful process, mainly if considerable assets were acquired during your marriage.
A high asset divorce can be much more complicated than a regular divorce due to the complexity of the financial issues involved.
Since the assets in a high net worth divorce case can include real estate holdings, stocks, or other assets that may appreciate or depreciate, it’s not always easy to value them. It is highly advisable to have the guidance of an experienced divorce attorney who can help ensure that your rights and assets are protected.