Although many marriage breakups involve financial complications, high-net-worth divorces raise those issues to a far higher level. Untangling the finances of a couple with several million dollars in assets can be fraught with intricacies and potentially protracted conflict. Several aspects of these cases necessitate specialized legal and financial expertise. 

What most differentiates a high-net-worth divorce is the sheer volume and variety of assets involved. Beyond the typical marital home and retirement accounts, wealthier individuals often have a complex web of investments, businesses and diverse income sources. Each asset class has its own legal considerations, and arriving at a fair valuation can be difficult. For example, splitting ownership of a business ownership interest or of a deferred compensation plan can require accountants and financial advisors to ensure a fair division.

Another layer of complication is the potential for hidden assets. With significant wealth at stake, one spouse may be tempted to conceal assets or income. This may necessitate forensic accounting, a specialized field where experts uncover hidden wealth through meticulous examination of financial records. The cost of such examinations can be excessive and can further extend an already lengthy divorce process.

Still another consideration is that wealthy couples may have assets scattered across different states or even in other countries. When it comes to divorce, each jurisdiction has its own set of laws governing property division, spousal support and child custody. This can lead to a conflict over which state's laws should apply. 

A spouse’s ownership of business interests can present difficult challenges. When a high-net-worth individual is an entrepreneur or owns a significant share in a company, the other spouse might be entitled to a portion of the interest. Determining that share requires analysis of the ownership structure and the interests of existing business partners. In some cases, the divorce might even force the sale of the company.

There is also the issue of the welfare of the children of the marriage. Child support arrangements become particularly intricate when dealing with significant wealth and the state guidelines do not govern in high-income situations. Considerations for private schooling, luxurious vacation homes and potential inheritances can impact the calculations.

Beyond financial considerations, there's the emotional element. High-net-worth individuals may have built their wealth together, creating a sense of shared identity and power. The emotional toll of dismantling that can be immense, leading to acrimony and a desire to "win" the divorce, rather than reach an amicable settlement. This can drive up costs and prolong the process.

While navigating these complexities can be daunting, a divorce attorney familiar with the special demands of high-net-worth divorce can help make sure that the allocation of assets and financial obligations is fair and equitable. 

At Bombardo Law Office, P.C. in Syracuse, my firm assists Central New York clients with equitable distribution matters and other aspects of the divorce process. To schedule a free legal consultation, call 1-315-488-5544 or contact me online.