When you’re getting a divorce, it can be hard to ensure that the split is fair, especially when one spouse earns significantly more money than the other. Ford & Friedman understands know how difficult it is to disentangle complicated financial situations. We also realise that both parties need a deal that works for them.
This article broadly outlines the steps you should take in high asset divorce when most of the wealth comes from one source.
Your Rights and Options in a Nevada Divorce
In a divorce, marital assets must be divided. The state uses an “equal” model, meaning that each spouse walks away with 50% of the marital property. This sounds fair until you consider the fact that you will owe your spouse 50% of whatever you keep. This may be impossible to do if you earn a much lower income than your spouse.
Fortunately, you are not forced to take your divorce to court. You can attend mediation, where you and your spouse create your own agreement, one that works for both of you. Mediation gives everyone a voice, and it can help avoid the contentious atmosphere of a courtroom trial. This is especially important if you have children and want to make the divorce process as peaceful as possible for their sake.
Through mediation, you work together to determine how your assets will be split. With the guidance of a mediator, you can ensure that you are both making informed decisions. This arrangement can keep the divorce more equitable, protecting both parties in the aftermath.
Gathering Accurate Financial Information for Both Spouses
Bank statements, credit card statements, tax returns, and other financial records must be collected for both partners. It is also important to obtain a credit report for each spouse. This documentation will help ensure that all debts and liabilities are correctly considered in your property distribution plan.
Examples of a Fair Distribution of Assets
Divorces involving high net worth individuals can be complex, with numerous assets to divide.
Using equitable distribution involves dividing assets based on:
- The length of the marriage
- The earning capacity of each spouse
- Each spouse's contribution to their marriage
Staying truly fair may involve selling certain assets, like real estate or business holdings, and dividing the proceeds between both parties.
Creating a Fair Alimony Plan
Alimony is designed to keep one spouse within their accustomed lifestyle after a divorce. Being in a high net worth marriage complicates this issue. The wealthier of the two spouses could keep their spouse very comfortable without significantly decreasing their own worth. To the receiving spouse, this may seem unfair, and they may demand more.
Once more, you can leave these decisions up to the court, or you can work out a reasonable plan through mediation. Make sure to listen to your spouse’s concerns while equally expressing your own. To one, it may not make sense to cut their wealth in half, while the other fairly believes they deserve more than “just enough.” Through skilled, careful, compassionate negotiations, you could reach a deal that leaves both parties satisfied.
Our firm is here to help make sure both parties stay protected after a high net worth divorce. Reach out to our team online for a consultation, or call our office at (702) 904-9898.