An Overview of Financial Considerations in a High Net Worth Divorce in Florida
For high income and high asset couples, divorce can be especially complicated. It is crucial that you are prepared for all of the unique financial issues that might arise. At Williams & Varsegi, LLC, we have extensive experience handling high net worth divorce cases. Here, our Boca Raton high net worth divorce lawyer provides an overview of the financial considerations that you need to be prepared to resolve in Florida.
Know the Law: Equitable Distribution and Complex Marital Assets in Florida Law
Florida is an equitable distribution state (Florida Statutes § 61.075). That means that courts divide marital property based on fairness. A strict fifty-fifty split is not guaranteed. Dividing marital property can be especially challenging for high net worth couples. These cases often involve closely held businesses, professional practices, private equity interests, and deferred compensation.
Understanding Business Valuation and Income Determination
For high income and high asset individuals, determining their net worth is not always easy. It can be especially hard for business owners. Ownership interests in companies require formal valuation. In Florida, courts rely on recognized methodologies such as income, market, and asset approaches. In many cases, forensic accounting may be required. Disputes arise over goodwill, particularly whether enterprise goodwill is divisible while personal goodwill tied to a spouse’s reputation is not. Income available for support may differ from taxable income. Courts can adjust for retained earnings, shareholder distributions, and discretionary expenses paid by a business.
Alimony is Far More Likely to Be Awarded in High Net Worth Divorce Cases
Spousal support is not guaranteed in every divorce in Florida. With that being said, alimony is far more likely to be awarded in high net worth divorce cases. Alimony determinations turn on need and ability to pay (Florida Statutes § 61.08). High net worth cases frequently involve multiple alimony types, including durational or, in limited circumstances, permanent support. Among other things, courts examine the standard of living established during the marriage, the length of the marriage, and each spouse’s earning capacity.
Comprehensive Financial Disclosures are Required
Full and accurate financial disclosure is mandatory. Florida requires sworn financial affidavits and comprehensive production of documents. High net worth cases expand the scope to include business records, partnership agreements, trust instruments, and international holdings. Courts can impose sanctions for noncompliance, draw adverse inferences, and award attorney’s fees.
Tax Consequences Matter for High Net Worth Divorces
Tax issues can be a big deal in high net worth divorce cases. Since federal law eliminated the alimony deduction for new orders, payments are generally not deductible to the payor and not taxable to the recipient. Asset transfers incident to divorce can be tax neutral, but the consequences vary. You need a high net worth divorce lawyer who is prepared to help you understand and navigate any potential tax consequences.
Contact Our Boca Raton High Net Worth Divorce Attorney Today
At Williams & Varsegi, LLC, our Boca Raton high net worth divorce lawyer has the legal expertise that you can rely on. If you have any questions about a high net worth divorce, we can help. Contact us today for a completely confidential, no obligation consultation. We handle high net worth divorce cases in Broward County and throughout South Florida.
