Join Club

Legal Review: Why Divorces Involving High Net Worth Couples are Much More Complicated

By Family Law Attorney Galit Moskowitz of Moskowitz Law Group, LLC

Divorce is never easy, but when it involves a great amount of wealth, it becomes so much more complicated due to the amount of property that must be divided.

While each divorce is governed by the state it is filed in, there are some complexities anyone with a high net worth, and in the middle of a divorce, will face. In divorce, property is divided in a 50/50 split, or by equitable distribution.

Community states use the straight-down-the-middle formula while equitable distribution states will divide property up fairly, or justly. This does not always mean that it will be split equally, though.

In community states, dividing property evenly in a high net worth divorce is fairly simple, although it does have its own complications. In equitable distribution states, it is a bit more complex. For example, a judge may award one spouse $5 million and the other $10 million, as both amounts provide plenty for a spouse to live off.

“There are many factors judges across the country will take into consideration,” says Galit Moskowitz of Moskowitz Law Group, LLC. “But the one factor that any judge will weigh is the contribution of each spouse to their earnings. If one made the bulk of the income and was highly involved in a business that made most of that income and the other was not, the judge will likely award those with greater involvement more.”

However, complications will still be at play. One similarity all high net worth divorces have is that their assets are complex. It is not merely houses and cars that make up the assets. It is often stocks and shares in companies. When this is the case, those shares are sometimes divided equally.

In other instances, both spouses will co-manage the shares, which can often put investors and corporate directors of the companies at greater ease.

Another commonality in all divorces, no matter where they occur in the country, is that prenuptial agreements supersede any state property division laws. While a judge will still have to determine that a prenuptial agreement is fair and enforceable, whatever the couple outlined when they signed it is how their property will be divided in the end.

Recent Stories

Wakefield High School has reportedly been placed in lockdown amid a report of a trespasser in the school.

A well-regarded corner market in Rosslyn appears to be closed. When ARLnow stopped by Gallery Market & Cafe at 1800 N. Oak Street earlier this week, the lights were off,…

Local residents can now weigh in on the “future of pickleball” at the Walter Reed Community Center. A survey was sent out earlier this week by the Arlington Dept. of…

ARLnow has been hearing for some time that readers are interested in reviews of local restaurants. Just one problem: we’re far from being food critics. And we don’t have the…

Need help dealing with anxiety, depression or stress?

If you’re struggling to cope with anxiety, depression or stress, our virtual psychotherapy services can help. We offer a confidential and convenient service that’s tailored to your needs.

In our practice, cognitive behavioral therapy (or CBT) is an important tool we use to provide effective relief for those facing anxiety and depression. We believe that cognitive change can be used to improve behaviors and emotions, thus allowing you to achieve mental wellness. By understanding the cognitive distortions that lead to negative thought patterns, we are able to create interventions tailored to each of our clients. This empowering approach can help you gain control of how your own thoughts, beliefs, and behaviors impact your experience. With CBT, our service provides an effective treatment that can bring long-term change and mental stability.

Book a free consultation today and see how we can help you live a happier and healthier life.

Read More

Submit your own Announcement here.

St. Charles offers a play-based curriculum in a welcoming, Christ-centered environment.

Our program focuses on socio-emotional development and kindergarten readiness through hands-on and engaging activities. Our programs offer different schedules ranging from 7:30 am-5:30 pm for students, ages 2-5. We feature a full-day Jr. kindergarten class for older 4’s/5’s. Our facility includes a full-sized gymnasium, school chapel, and library. All of our students enjoy music and physical education weekly. Children have an opportunity to participate in enrichment classes such as soccer, basketball, ballet, and science.

We offer Summer Camp with weekly themes and twice a week water play, including Fun Friday moon bounce. Please join us for our Open House Feb. 3 at 9:30 am and 11:00 am. Click here to sign-up.

For more information or to schedule a tour, visit us at www.stcharlesarlington.org or call (703) 527-0608.

Submit your own Announcement here.

Almost, Maine

Just in time for Valentine’s Day, join us for a series of vignettes that revolve around the theme of love. Taking place in an almost-town called Almost, Maine, we will show you different, but important, facet of love in each

First-time Moms Meet & Greet

The truth, your first pregnancy and new mom months are full of twists and turns, ups and downs, and lots of questions! None of us really know the best way to do it – we just figure it out, together…

×

Subscribe to our mailing list