Can You Get More Than 50% of Assets in a High-Net-Worth Divorce?

Divorce is never easy, but throw a mountain of assets into the mix and things can get treacherous. If you’re facing a high-net-worth split, you’re probably wondering: is an even 50/50 division my only option? Or is there a way to walk away with a bigger slice of the marital pie?

While an equal split may seem like the default, there are absolutely scenarios where one spouse can make a legitimate case for a bigger share, but it’s not easy.

Equitable Distribution in New Jersey

New Jersey follows the principle of “equitable distribution” when it comes to dividing marital assets in a divorce. This doesn’t necessarily mean a 50-50 split. Instead, it means the division should be fair and just, considering various factors.

Factors That Could Lead to an Uneven Asset Split

Several circumstances might lead to one spouse receiving more than 50% of the assets in a high-net-worth divorce. Let’s explore some of these factors:

1. Length of the Marriage

In general, the longer the marriage, the more likely it is that assets will be divided equally. However, in shorter marriages, especially those involving significant wealth accumulated before the marriage, the court might lean towards returning each spouse to their financial position before the marriage.

2. Contributions to the Marriage

This isn’t just about financial contributions. The court also considers:

• Homemaking and child-rearing contributions
• Support of the other spouse’s career or education
• Sacrifices made for the family (like giving up a career)

In high-net-worth cases, a spouse who significantly supported the other’s wealth-building efforts might be awarded more than 50% of the assets.

3. Economic Circumstances of Each Spouse

The court will look at each spouse’s ability to maintain their standard of living post-divorce. If there’s a significant disparity, the less financially secure spouse might receive a larger share of the assets.

4. Health and Age of the Spouses

If one spouse has health issues or is significantly older, they might receive a larger portion of the assets to ensure their future care and financial stability.

5. Prenuptial or Postnuptial Agreements

These agreements can significantly impact asset division. However, they must be properly executed and fair to be enforceable. An unfair prenup might be challenged and potentially lead to a more equitable division of assets.

6. Tax Consequences

The tax implications of asset division are particularly important in high-net-worth divorces. The court may award a larger share of assets to offset significant tax burdens.

7. Dissipation of Marital Assets

If one spouse has wastefully or fraudulently dissipated marital assets (for example, through gambling or extramarital affairs), the other spouse might be awarded a larger share of the remaining assets as compensation.

8. Separate Property Commingled with Marital Property

In some cases, separate property (owned before the marriage or inherited during the marriage) becomes commingled with marital property. This can complicate asset division and potentially lead to an uneven split.

Negotiation in High-Net-Worth Divorces

While these factors guide the court’s decisions, it’s important to remember that many high-net-worth divorces are settled through negotiation rather than litigation. This is where having experienced legal representation becomes crucial.

At Netsquire, we understand the complexities of high-net-worth divorces and the importance of strategic negotiation. Our approach focuses on:

1. Thorough Asset Valuation: Ensuring all assets are properly identified and valued, including complex assets like business interests, stock options, and overseas investments.
2. Creative Solutions: Developing innovative settlement proposals that address both parties’ needs and priorities.
3. Tax-Efficient Strategies: Structuring asset division in a way that minimizes tax implications for both parties.
4. Long-Term Financial Planning: Considering the long-term financial implications of various asset division scenarios.
5. Protecting Business Interests: If one spouse owns a business, we work to protect those interests while ensuring fair compensation for the other spouse.

When Might You Receive Less Than 50% of the Assets?

It’s also worth noting that there are situations where you might receive less than 50% of the assets. These could include:

• Short-term marriages where one spouse entered with significantly more wealth
• Cases where one spouse’s separate property far outweighs the marital property
• Situations where one spouse has a much higher earning capacity post-divorce

In high-net-worth divorces, full financial disclosure is crucial. Hidden assets or income can significantly impact the fairness of asset division. At Netsquire, we have experience in uncovering hidden assets and ensuring a complete financial picture is presented.

Unique Considerations in High-Net-Worth Divorces

High-net-worth divorces often involve unique assets that require special consideration:

• Business Valuations: Determining the true value of a business can be complex and may require expert analysis.
• Real Estate Holdings: Multiple properties, both domestic and international, may need to be valued and divided.
• Investment Portfolios: These may include stocks, bonds, mutual funds, and more complex investment vehicles.
• Retirement Accounts and Pensions: These are often significant assets that need to be carefully divided.
• Trusts: Understanding how trusts factor into asset division can be crucial.
• Collectibles and Luxury Items: From art collections to yachts, these items need proper valuation.

The Netsquire Approach to High-Net-Worth Divorces

At Netsquire, we understand that high-net-worth divorces require a specialized approach. Our team is equipped to handle the complexities of these cases with discretion and expertise. We focus on:

1. Comprehensive Asset Analysis: We leave no stone unturned in identifying and valuing all assets.
2. Strategic Negotiation: Our goal is to achieve the best possible outcome for you through skilled negotiation.
3. Litigation Readiness: While we prefer to settle out of court, we’re always prepared to litigate if necessary to protect your interests.
4. Emotional Support: We understand the emotional toll of divorce and provide compassionate guidance throughout the process.
5. Future-Focused Solutions: We aim for settlements that not only address immediate needs but also set you up for long-term financial stability.

Whether you end up with more than 50% of the assets, exactly 50%, or less, what’s most important is that the division is fair and sets you up for financial success post-divorce. At Netsquire, we’re committed to achieving that goal for each of our clients.

Remember, every high-net-worth divorce is unique. While it’s possible to receive more than 50% of the assets, the outcome depends on a variety of factors specific to your situation. The key is to have knowledgeable, experienced legal representation to guide you through the process and advocate for your interests.

If you’re facing a high-net-worth divorce, don’t try to handle it alone. Contact Netsquire today for a consultation.