Divorce can be stressful for many reasons, including its potential impact on your finances. But if you have a high net worth, the stakes can be even higher when your property is at risk.
If you or your spouse have significant assets, navigating a divorce can become much more complex than normal—especially when dealing with high-value assets such as fine art, memorabilia, jewelry, stocks, and real estate. If you’re facing this situation in Tennessee, it’s important to understand how to protect your assets and your financial future with the help of an experienced family law attorney.
In this blog, we explain high-net-worth divorce and provide important steps to protect yourself and your assets throughout the legal process.
What is Considered a High Net-Worth Divorce?
A high net-worth divorce typically involves one or both parties holding assets totaling over $1 million. With a record number of Americans owning retirement accounts with $1+ million, the number of high net-worth divorces will only increase over the coming years. These divorces often come with unique challenges, including more assets to divide and more complex legal considerations.
Tennessee operates under equitable distribution, which means that assets acquired while married are divided fairly regardless of whose name is on them. Because of how divorce works in Tennessee, it’s important to understand which assets may be divided and which are considered separate property.
Steps to Take to Protect Your Assets
- Prenuptial or Postnuptial Agreements: If you didn’t create a prenuptial agreement before marriage, a postnuptial agreement fulfills a similar function as a prenuptial agreement and can help safeguard your assets during your marriage. These legal agreements outline what happens to your property in case of a divorce and can protect your most valuable assets.
- Trusts Created Before Marriage: Assets placed in a trust before the marriage are considered separate property and protected from division in the event of a divorce. This includes trusts or trust funds created specifically to hold high-value items such as fine art, collectibles, or family heirlooms. If these trusts were established before the marriage and remained separate, they typically would not be subject to division.
- Asset Categorization: Assets purchased or obtained before the marriage, such as real estate, inheritances, or gifts, may be protected as separate property. However, if these assets have been commingled—such as using marital funds to pay for the upkeep of a home owned before marriage—they may be subject to division. Keeping clear financial records to prove that these assets remain separate is important.
- Protecting Stocks and Investments: Stocks, bonds, and other investments purchased during the marriage are considered marital property in Tennessee. However, those could remain your property if you received stocks as part of an inheritance or through a pre-marital trust. Working with a financial advisor during your divorce can help you categorize your assets correctly and ensure you retain what is rightfully yours.
- Real Estate and High-Value Personal Property: Dividing real estate and high-value personal property like artwork, memorabilia, and jewelry can be contentious in a high net-worth divorce. If purchased during the marriage, the court may decide these items are marital property. To protect these assets, it’s important to have them properly appraised and documented.
How We Can Help With Your High Net-Worth Divorce
High net-worth divorces require extensive experience and knowledge of Tennessee family law to successfully navigate. Inman, Stadler & Hill has the track record of success you need for peace of mind and a successful resolution.
With our firm on your side during your high net-worth divorce, you’ll get:
- Asset Identification and Valuation: We will help you accurately identify and value significant assets such as businesses, real estate, investments, and retirement accounts. Our team works closely with financial experts to ensure all assets are accounted for, including hidden assets.
- Legal Representation and Negotiation: Our team will provide strategic legal counsel and advocate for your best interests. We ensure that asset division is equitable and fair to protect what you and your family have worked hard to build.
- Spousal and Child Support Guidance: We will guide you through the complex process of determining spousal and child support, which often requires careful consideration in high net-worth divorces due to the significant financial stakes involved.
- Tax and Legal Implications: Due to the significant tax implications of a high net-worth divorce, we collaborate with tax experts to minimize liabilities and ensure your financial future is secure.
- Privacy and Publicity Management: Protecting your privacy is critical in high-profile cases. We can assist you in requesting sealed court proceedings or taking other measures to avoid unnecessary publicity and ensure your matters remain private.
Protecting Your Financial Future
Working with an experienced Tennessee high net-worth divorce attorney is critical to protecting your assets.
At Inman, Stadler & Hill, we understand the complexities of high net-worth divorces, and we’re here to help you safeguard your wealth. Whether through a prenuptial or postnuptial agreement or by ensuring that your trusts and separate property are fully protected, our team will guide you through every step.
If you’re facing a high net-worth divorce, contact us today to schedule a consultation. Our goal is to protect your assets and secure your financial future.
