High Net Worth Divorces In Nevada
When people with extensive assets or high value assets divorce, there can be unique issues.
Property Division Is More Complex
One of the most important things to keep in mind when negotiating this type of divorce, is that many couples with high net worth have different types of holdings than others might possess – for example, a family business or a significant stock portfolio. These must be properly assessed – business valuation in particular is critical Assets may also have to be traced extensively, to ensure that they are properly classified as community or separate property (or in some cases, portions of each can be classified correctly).
It is also important to keep the potential tax burden of a high net worth divorce in mind. Normally a divorce may put someone in a lower tax bracket since they will be relying on one income rather than two. However, with wealthy couples, this is less common – between selling or leveraging assets and alimony or child support, many spouses inherit the same tax burden with less income to pay it. Normally community property is divided equally, but if necessary, a knowledgeable attorney can help structure a settlement where the tax burden is more manageable.
Alimony and Child Support Changes
Child support and alimony are routinely issues of contention in any divorce, but negotiations can become more complex in a high net worth divorce, because of the increased sums at stake. Given the funds at stake and the Court’s discretion with regard to alimony in particular, this can sometimes lead to problems such as hiding assets, if one party is convinced they should not have to pay as much as the court demands.
Alimony and child support negotiations will become even more complex once certain provisions of the tax bill passed in 2018 go into effect in January 2019 – namely, the tax deductibility of alimony payments will cease for divorces that are not finalized prior to that year. If a divorce is finalized before January 1 2019, the parties may be able to preserve the deduction (depending on the specific nature of their divorce agreement), but the Tax Cuts & Jobs Act explicitly ends the deduction for alimony effective January 1, 2019. This has the potential to cause issues for divorcing couples, especially those with high net worth, because the tax burden of such payments must now be calculated.
Contact A Knowledgeable Attorney
Divorce is consistently described as one of the toughest experiences of one’s life, and if you are going through one, you need experienced representation, regardless of your net worth. The attorneys at the Kainen Law Group are happy to put our years of work and knowledge at your disposal. Call our office today at 702-823-4900 to set up an appointment.
Resources:
cnbc.com/2018/02/16/loss-of-alimony-tax-break-in-tax-law-may-inflame-divorce-negotiations.html
leg.state.nv.us/NRS/NRS-125.html#NRS125Sec150
