High-Net-Worth Divorces & It’s Challenges

Filing for divorce in Connecticut can be a challenging time for anyone, including families with substantial assets and/or income. There is no bright-line test for what is labeled a high-net-worth divorce, but suffice it to say that the colloquial expression, “you know it when you see it” probably applies. There are specific tools and pragmatic solutions that come into play for high net-worth divorces that are not present in other divorce cases. It is necessary for high- net-worth divorce clients to have counsel who work with and understand all aspects of these particular dissolutions.

The Division of property
Like other states, Connecticut follows the equitable distribution approach to dividing marital assets and income, often referred to as the “marital estate.”

Under Connecticut law, the court may consider many factors in dividing the marital estate, including, but not limited to:

• The length of the marriage
• The amount and sources of income of each spouse
• Earning potential of each spouse following the divorce
• Whether there are children
• Whether a spouse left the workforce to raise children
• The spouses age
• The spouses health
• The contribution of each spouse to the acquisition, maintenance, and appreciation of marital assets

Tools for high-net-worth divorces

It is often necessary and quite common to retain outside experts in high- net-worth divorces.  For example, you might need a forensic accountant to account for variable and independent income streams.  The accountant may also be called upon to value specific assets such as a closely held business, or the potential future income related to carried interest holdings and/or equity interests.  The accountant or other financial professional may also be needed to perform valuations and formulate recommendations regarding possible division scenarios for pensions, retirement accounts, deferred compensation, and restricted stock options.  Other experts may be called upon to appraise real estate, jewelry, precious metals, antiques, art, automobiles, and the like.