Even spouses who have considerable wealth may have to face the fact that they will be making adjustments after they divorce. When the income is divided and the households doubled, it may mean rearranging the budget to maintain a certain standard of living. However, even when couples expect these changes, there may be other elements of a high asset divorce they are not prepared for.
Splitting assets can result in unexpected taxation. For example, a New Jersey spouse who obtains stocks or assets from a retirement plan may end up paying taxes on the capital gain. Divorcing spouses who opt to sell their home or other real estate and split the profits may also face capital gains taxes that could seriously deplete the amount of cash they expected to end up with.
On the other hand, one spouse may opt to keep the home in exchange for other marital assets. This can be a financial mistake if that spouse is left to handle the mortgage, property taxes, maintenance and repairs, and utilities on one income. A spouse who accepts the home in a divorce settlement should be prepared to spend more than 37 percent of his or her income, perhaps more if children are involved.
When fighting for marital assets in a high asset divorce, it is important for a spouse to consider long-term ramifications of each asset and not only the face value. This can be difficult to do during an emotional event like a divorce. It may help to have the guidance of a skilled attorney who has experience in property division laws of New Jersey.
