Divorce is never easy to go through, but it can get even more complicated when you’re divorcing a wealthy individual or a highly successful professional. There are many issues that you need to take into account when it comes to the division of assets in divorce cases involving individuals with high net worth or income.
Understand the marital assets involved
In most cases, high-income spouses will have significant marital assets. In these situations, it is important to take into account the net worth of the couple and all of the assets that need to get divided. This includes property, investments, pensions and other retirement savings. If you are divorcing a high-income individual, understanding their entire financial situation can help you make sure that you get your fair share during the divorce proceedings.
Factor in deferred compensation
Executive compensation can be a source of tension in divorce cases involving high-income individuals. Deferred compensation is typically paid out after a certain period of time, such as when the executive retires.
However, in some cases, deferred compensation can get distributed before retirement. This can be especially problematic if there is a large payout involved. If you are divorcing someone with a high income, it is important to factor in any potential deferred compensation payments that they may receive in future in the division of assets.
Consider restricted stock awards
Restricted stock awards are typically given to executives when they sign long-term employment contracts. These restricted stocks have a value associated with them, but the individuals cannot sell the stock itself until after a certain period of time. If you are divorcing someone who owns significant shares in their company, it is important to consider any outstanding restricted shares that may be due to them.
If you are familiar with the most common issues that come up in high-net-worth divorce cases, you can be better prepared to protect your interests. Ultimately, you want to understand the full picture of the marital assets and get what you deserve out of your divorce settlement.
