Traditionally, having a million dollars or more could constitute a high-net-worth divorce. Associating a high-net-worth divorce with a specific dollar amount may be somewhat misleading. For example, the average cost of a home in some areas of New York is well beyond $4 million. Though these people make enough money to afford these properties, that may be where most of their funds are going.
Rather than money, take a look at the number and type of assets you have. Divorce can be complex, which is why people hire legal counsel. It becomes more challenging when there are multiple revenue streams, investments, and even shared business. Whereas the couple with a $4 million home will likely need an attorney experienced with high-net-worth divorces, so does the couple who has the assets we just mentioned—even if they are worth less than $1 million.
Potential Challenges
You and your spouse spent time and energy on merging your lives. During a divorce, you (and your attorney) will have to look at all your separate and marital assets. When you look at a bank account, there is no question regarding its value. It is simply how much is in the account. The value of stocks, real property, bonds, and other assets may be more subjective—or they at least lend themselves to being valued differently by different people. Without knowing how much an asset is worth, you cannot divide it appropriately.
Furthermore, an attorney who works with high-net-worth divorces understands the future value of an asset. Think about a couple who sacrificed for years trying to get traction with a business they began. Though the company may be in the early stages of growth, how much will it be worth in five to ten years?
- If one buys the other one out, is that based on what the business is worth now or in the future?
- How can both spouses ensure they are compensated for what they put into the business if its potential for profits outweighs its current financial position?
A Network of Solutions
A high-net-worth divorce is going to center on appropriately valuing assets. For example, if you invested money into your spouse’s education, how much will their degree contribute to their future earning potential? If you don’t have the answers to these questions, that’s ok. No one expects you to. Part of what makes a high-net-worth divorce attorney so valuable is their ability to resolve each issue we have mentioned. They have seen the problem before and have worked with experts in various fields to arrive at suitable solutions. These attorneys maintain these networks because they are paramount in navigating high-net-worth divorces.
When you choose to be represented by attorney Andrea Galamaski, you will not only work with a lawyer who has significant experience with high-net-worth divorces but can contact the right subject matter expert when it comes to valuations and equitable distribution. Contact Andrea L. Gamalski, Attorney & Counselor at Law, today to schedule a free phone consultation.
Andrea L. Gamalski Attorneys at Law
Latest posts by Andrea L. Gamalski Attorneys at Law (see all)
- DUIs, Your Rights, & Conditional Licenses - September 15, 2023
