The median household income for Illinois was between $50,000 and $59,999 in 2015, according to the U.S. Census Bureau. Yet, some couples will make considerably more than the median household income. If you and your spouse are a couple who accumulated a great deal of wealth, then you will be part of a high net worth divorce. This type of a divorce can be lengthy, complicated, and costly without the right legal advice.
Issues Impacted by Your High Net Worth
If you and your spouse earn high incomes or have accumulated a great deal of assets, your worth will likely affect many parts of your divorce, including the:
- Division of the marital estate
- Amount and duration of spousal maintenance
- Amount of child support
Special Considerations in a High Net Worth Divorce
High net worth divorces can become complicated and lengthy due to numerous special considerations. During the divorce, you and your spouse may need to deal with:
- Real estate holdings: If you own multiple properties around the U.S. or world, they need to be valued, sold, or granted to a spouse. Your properties are also likely to be larger or valued at a higher amount than the state’s average house. This can make real estate issues much more complicated than if you only owned one modest family home.
- Business interests: You and your spouse may own a business together or hold ownership interest in one or more ventures. You two and your attorneys will have to consider how a family business is handled, particularly if you want it to continue, and how other stock or equity is valued and divided.
- Retirement assets: If you and your spouse have been putting away for retirement, there could be a considerable amount of independent retirement accounts, 401(k)s, pensions, stock options, and other accounts to review, value, and divide.
- Assets owned abroad: if you or your spouse have real estate or other assets abroad, foreign laws or international treaties may impact the outcome of your property distribution.
- Trusts: If you and your spouse have property in trusts established for the benefit of others, this can complicate how this property is handled during a divorce. It may depend on the type of trust, including whether it is revocable or irrevocable, and who technically owns the property at the time of the divorce. It may also depend on whether you and your spouse benefit from a trust or have created your trusts you want to dismantle or continue.
- Potential legacies: If you and your spouse have children together or from previous relationships, the property division may matter greatly to each of you because of what you want to leave to your kids.
- Tax issues: Due to the wide variety of assets found in high net worth divorces, there can be considerable tax implications related to the division of property. You should not agree to a property settlement until you have spoken with a tax professional about the potential ramifications.
Preparing for a High Net Worth Divorce
If you and your spouse have decided to divorce and have a significant net worth, contact an attorney experienced with high net worth divorces and then build an appropriate financial team. There are likely many assets that need to be valued, and contracts such as business or prenuptial agreements, that need to be reviewed. Additionally, if you were less involved in the family finances during your marriage, you may need a forensic accountant to determine all of the marital assets and their values.
Contact my Office for Advice Today
If you are wondering how to handle a high net worth divorce, contact me today at (312) 621-5234 to learn more about Illinois law, your rights, and your legal options. I have experience representing high net worth clients and as a CPA offer considerable insight into the complexities of these cases.
