Selecting the appropriate attorney to represent you in a high-net-worth divorce is critical due to the complexity of the issues involved in such divorces. In addition to dealing with large estates, high-net-worth divorces also include business interests and complex marital property rights.
Asking the right questions to evaluate their level of expertise in representing clients is important in high-net-worth divorces. Some of the most common questions focus on their background, approach to asset division, and familiarity with the unique challenges presented in high-asset divorce cases.
- How many high-net-worth divorce cases have you represented?
You can start by inquiring about the number of cases they have represented. This helps determine whether the attorney has sufficient experience to handle complex financial matters. Asking about the number and type of cases can also reveal whether their experience specifically includes high-net-worth divorces rather than general family law. Specialized knowledge is often required in these cases, particularly regarding complex assets, business valuations, stock options, and tax implications.
- What process do you follow to determine the value of assets and to discover assets that were not disclosed?
Your attorney may use a variety of professionals, including forensic accountants or financial analysts, to assist them in this regard. How the attorney uncovers hidden accounts, offshore assets, or income that a spouse may try to conceal will show you whether they can accurately and fully present your financial picture during the divorce.
- How will you determine the value of my business and professional practice?
When one or both parties to the divorce have a business or a professional practice, it is necessary for you to properly evaluate that business to ensure that you get a fair determination of the value of the business. Knowing whether he or she works with other experts, such as financial experts or business appraisers, will provide you with insight into how they will protect your interest in the division of your business or professional practice.
- What are the tax implications of property division?
Taxes can greatly impact the actual value of your property division. You will want to ask your attorney how the division of your assets, such as your investment portfolio, your real estate, or your retirement accounts, may create tax obligations. Your attorney should be able to coordinate with tax experts to minimize your exposure to taxes as you attempt to achieve a fair division of your marital assets.
- How does spousal support differ in cases where there are significant income disparities between spouses?
There are generally large differences in income among high-net-worth couples. Therefore, you will want to know from your attorney how they approach spousal support in high-income situations. Understanding their approach will allow you to better prepare yourself financially for life after your divorce.
- How long will this divorce take, and how much will it cost?
Your attorney should be transparent about the length of time that a divorce may take and the costs associated with the divorce. While high asset divorces are rarely short-term or low-cost, your attorney should provide you with an estimate of the timeframe for the divorce and how he or she manages negotiations and settlements to minimize your expenses while achieving the best possible result for you.
Key Takeaways
- Select an attorney who has experience in high-net-worth divorce cases.
- Determine how your attorney values assets and identifies hidden wealth.
- Understand how your attorney will address the tax implications of your divorce, including spousal support and business interests.
- Understand how your attorney will manage the time requirements of your case and the potential costs.
- Determine if your attorney has relationships with qualified financial and tax experts.
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