A married couple with substantial assets may face more difficulties when divorce. The division of property under New York laws may find a couple fighting and the process contentious.
While almost every kind of divorce faces challenges, those involving high assets may prove even more so. Discover some of the unique issues a wealthier couple may face when ending their marriage.
Hidden accounts
Wealthier people tend to have a vast portfolio. As such, it is common for a multitude of accounts to exist. At the onset of a divorce, couples must disclose all financial accounts. However, one spouse may try to hide accounts from the other. Financial infidelity occurs when one spouse takes marital money and hides it for individual use. These hidden accounts will turn up eventually, and when they do, it may spell trouble for the sneaky spouse.
Splitting retirement
A high earning couple typically has an excess of funds tied up in retirement accounts. If the divorce occurs before the couple nears retirement age, splitting this money may prove costly. If possible, a couple may want to consider buying one or the other out of the retirement account with property or cash. This will stop either the tax implication of opening the retirement money too soon or payments towards court fees and costs of laying the legal groundwork for splitting it later.
Under New York laws, the court distributes assets and debts equitably between a divorcing couple. This means one spouse may wind up with more cash and debt than the other. Having an idea of some of the issues at stake in a divorce may help a couple decide to negotiate and compromise, rather than leaving their futures up to a judge to decide.
