Divorces are never easy, but the more assets there are, the more difficulties they will present. When a couple with a high net worth (HNW) ends their marriage, their problems will often track with how and when they acquired wealth. If a couple married before they became wealthy, they may lack a prenuptial agreement or have one that is unfair or invalid. Alternatively, if the parties were already affluent when they married, they may have private resources for vindictive behavior in court.

Wealthy people are used to getting what they want. The best defense is early advice from an experienced family lawyer. Attorneys who see many HNW divorces understand how ugly things can become and how to prevent the worst.

Asset Protection Strategies Before Divorce

Although a prenuptial agreement may be a strong shield, it cannot protect parties from everything—for better or worse. Prenups can protect assets that the spouses owned before their marriage or inherited from relatives, as well as related personal income. It can set terms for asset division, spousal support, or future alimony. But it cannot apply to child support, custody agreements, or visitations. See NJ Rev. Stat. § 37:2-34, 35.

A New Jersey prenup can fail if one partner:

  • Did not make a financial disclosure with the agreement. Each partner is entitled to “full and fair disclosure of the earnings, property and financial obligations” of the other. A partner who does not get a full disclosure must waive that right in writing. See § 37:2-38.
  • Did not consult an attorney before signing the agreement. If not, the agreement needs an explicit waiver from the partner who did not have counsel.
  • Signed under duress. Forcing a partner to sign is unlawful. Duress can include threats, religious coercion, or unfair pressure, such as introducing the agreement on the wedding day.
  • Had no legal capacity to sign. A person cannot enter into such an agreement if they are intoxicated, under the age of 18, or lack the mental capacity to understand it.

A court may also refuse to enforce a prenup that is unconscionable—extremely unfair to one party. However, New Jersey law has changed on this point. Any prenuptial agreement signed after June 27, 2013, can only be unconscionable if it was unfair at the time it was signed rather than at the time of the divorce. For an agreement made prior to that date, a court can instead decide that the agreement is unconscionable at the time of the divorce because one partner would be unable to support themselves or would be forced into a lower standard of living. See § 37:2-32(c) (2009).

Prenups can be amended, and a postnuptial agreement can replace an old prenup or protect individual assets in much the same way. It is best to make or review these agreements at regular intervals, before serious conflicts arise. After all, few happy couples would think of postnuptial agreements otherwise.

Particular Issues During HNW Divorces

Complex Assets and Interests

As a rule, New Jersey divorce law seeks “equitable distribution” of assets between the parties, which may or may not be an even 50% split. A divorce between a HNW couple often involves:

  • Real estate, held directly or in trust
  • Securities—stocks, bonds, and other financial instruments
  • Business holdings, including percentage of ownership in personal or family businesses
  • High-value movable assets, such as art, motor vehicles, or jewelry

It is vital to have the correct and current documentation of any possible marital assets. The New Jersey divorce process requires a Case Information Statement (CIS) that provides detailed financial information. Your family law team of attorneys and experts can help create an accurate valuation of businesses and assets at stake, as well as the associated tax obligations.

Controlling Financial Behavior

In some cases, one partner will try to prevent the other from even understanding their own financial situation, with devastating consequences. Financial abuse, constant surveillance, threats to loved ones or pets, manipulation of outside parties, and similar tactics can result in coercive control within a relationship. An abuser will not hesitate to use it to conceal financial information or make a partner think they have no rights to any property.

New Jersey law now recognizes coercive control as a form of domestic violence. It is crucial to find an understanding lawyer in this situation. The nature of this control often makes it difficult to compile evidence. It will take a seasoned family law attorney to recognize these tactics and protect the assets you are entitled to.

Children and Their Future

Although it certainly does not take any money for a parent to act badly during a divorce, wealth can enable some of the worst. A high-conflict parent with resources can make baseless legal allegations or poor parental choices that take valuable resources to fight. They can also try to use their wealth and social standing to force children’s loyalty or undermine the other parent.

A family law attorney who understands support requirements, custody disputes, and the strategies they involve can help you work to safeguard your children and their rights.

The Help You Deserve

In a divorce involving complicated assets and valuable properties, you will need the best protection that you can get—and so will your children. Our experienced New Jersey divorce and family law attorneys are ready to talk to you. Contact us today at 908-529-0353 to schedule your no-obligation case review at our Chester, New Jersey offices.