PA Divorce Lawyers | High Net Worth Divorce
For over 15 years, we have represented individuals in Montgomery County, PA faced with the challenges of divorce. What is the divorce process? When will I see my kids? Will my spouse get half of the accumulated assets? Will I have to pay alimony? Meanwhile, these same individuals are also coping with their own personal life and the emotions of separating from a spouse and the uncertainties of beginning a new chapter in their life. Divorce involving individuals with a high net worth such as millionaires and entrepreneurs, presents a unique set of challenges.
Support, APL, and Alimony
Support (child support or spousal support), alimony pendente lite (APL) and alimony are described in our family law page. The focus for the high net worth individual, however, is on “income”. Income is perhaps the biggest factor in determining the amount of support, APL or alimony that one is required to give or receive.
Base income from a W-2 is common. It is predictable. However, many high net worth individuals are business owners that take a profit distribution that can be taken throughout the year or at specific intervals. Other high net worth individuals are executives and their compensation often includes bonuses tied to individual or company performance. This is not so predictable and it can lead to various subjective views on future expectations of the amount of compensation.
What about reimbursed expenses such as a car allowance, gas, meals, etc. How do these factor into the equation? What about other interest income from investment accounts, stocks or bonds? Expense reimbursement and other income plays a vital role too.
Finally, the Pennsylvania child support guidelines only calculate the amount of support up to a certain combined net income. If you and your spouse exceed that limit, then you will need an experienced lawyer to explain to you how the court will arrive at an appropriate amount.
You will want an attorney to help you understand how courts will calculate the support amount given these variables. Income is not the only important factor in determining support, APL or alimony.
Professional Property Valuation and Asset Division
Equitably dividing marital property in high net worth cases also presents its own unique challenges. All marital property must be considered and the parties must do a comprehensive valuation for all of the assets/property. Our attorneys work closely with a network of trusted professionals to properly value your assets. We often work with appraisers, realtors, business valuation specialists, and private investigators to help determine the precise value of the property and tax consequences for dividing and distributing the property. These assets often include the following:
- Retirement accounts
– 401(k), pension, Traditional IRA, Roth IRA
- Investment accounts
– stocks, bonds, mutual funds, and other brokerage accounts
- Real estate
- Investment and rental properties
- Business interests
– partnerships, LLCs, corporations
- Automobiles, artwork, jewelry, and other items of tangible personal property
In a high net worth divorce, you have a lot to protect and a lot to lose. That is why we work diligently to protect your financial and personal interests, and to reach a favorable resolution on your behalf. Just because you have a high net worth does not mean that you want to waste your money on attorneys and court costs. We treat all of our clients with the same amount of compassion and respect. We tailor our strategies and our approach to all of our cases with careful deliberation, discussion and approval by you, our client. It does not matter whether you make $40,000,00 per year or $1 million. We will provide the most streamlined, cost effective approach to achieving your goals.