Property Distributions in High-Net Worth Divorces
Generally, Albany courts divide marital property as equitably as possible during a divorce, in accordance with New York Domestic Relations Law §236. In addition to considering factors such as income and length of the marriage, courts may also consider the following factors that may be of special interest to those of high net worth:
- Loss of inheritance rights upon divorce
- Tax consequences to each party
- Contributions made by one party to the career of the other party
A high-net worth couple may have different types of property whose sale could result in a large tax burden. A court may consider these tax consequences before ordering such a sale or distribution of marital property. A high-net worth divorce lawyer in Albany can provide further information on property distribution and tax consequences.
Contributions to Career or Career Potential
In some instances, the former marital partner in a high-net worth divorce may claim that they supported their spouse’s career and should be compensated accordingly.
A high-net worth individual’s increased earning capacity during the marriage could be a factor in property distribution, depending on the extent and nature of the other party’s contributions. If that increased earning capacity resulted mostly or solely from the high-net worth individual’s own efforts, a court may decide that it should not factor into property distribution, however, compensation may be obtained through claims of support.
A high-net worth individual may have achieved substantial success through a significant promotion that resulted mostly from their job performance, rather than contributions made by the other party in their marriage. In such a situation, a court in Albany may decide that any resulting increased earning potential is not subject to equitable distribution, but could be compensated through a claim of support.