What Factors Affect High Net Worth Divorce In Florida?
The question about the net worth of a couple comes up often in connection with Florida divorce, and there are certainly many factors that affect the process. However, it is reassuring to know that Florida divorce statutes do not have a financial threshold for the proceedings. You are not subjected to a different set of laws because of your income and assets, and you do not need to go through special proceedings simply due to the value of the marital estate. The divorce process will certainly be different because of secondary considerations, but all cases are unique regardless of net worth.
The issues that do arise with high net worth divorce cases involve property division, alimony, and parenting minor children. Again, these are the same topics for any divorce; it is the details that create challenges. Retaining an Orlando divorce lawyer is critical for protecting your rights, especially when trying to reach an agreement. There are numerous advantages for negotiating a marital settlement in a high net worth divorce that may help you preserve your wealth. Some of the factors that impact the process include:
Consider Your Budget: The divorce process can take time, but parties are still responsible for paying bills. Plus, there are additional expenses to consider if the court grants alimony pendente lite, i.e., spousal support during divorce. With high net worth divorce, some assets are not as liquid, so consider whether you need to change positions when going through the process.
Input from Financial Experts: In almost all cases, you will need to retain such professionals as financial analysts, tax advisers, and other experts. It is necessary to understand the potential pros and cons of a settlement, as well as the benefits and risks of going to trial. Financial specialists can provide the numbers you need to make informed decisions.
Taxes are a Factor with Settlement: Some of the issues to keep in mind with the tax implications of high net worth divorce include:
- Capital gains;
- Deducting alimony; and,
- Income tax consequences for property division.
Manage Assets Responsibly: All real estate and personal property acquired during the marriage will be subject to equitable distribution, which means it will be divided fairly between the spouses. While the divorce is proceeding, continue to maintain assets prudently and responsibly. There can be consequences for damaging, wasting, or otherwise diminishing property.
Life Insurance: For the party paying child support and alimony, the amounts could far exceed $1 million over time. If something happens to the payor, the recipient could be in a difficult financial position without this income. When discussing settlement, it is wise to consider whether this obligation should be secured through life insurance. If you go to court for a contested hearing, the judge may order the payor to procure a policy.
Trust a Central Florida Divorce Attorney to Guide You
For more information on the details that affect a high net worth divorce, please contact Greater Orlando Family Law to schedule a consultation. You can reach our firm by calling 407-377-6399 or visiting our website.