February 1, 2021 Hurst, Robin & Kay

Chicago High Net Worth Divorce Lawyer

Protecting Your Interests During High Net Worth Divorce

Executing a high net worth divorce requires not just legal expertise, but a deep understanding of finances and the ability to handle sensitive negotiations with tact and precision. Our Chicago, IL high net worth divorce lawyer specializes in serving clients in Chicago, IL and the surrounding suburbs, who find themselves facing the challenges of divorcing with significant assets at stake. Our team is well-versed in the details of high net worth divorces, from the valuation of portfolios to the negotiation of spousal support and the division of marital assets. We understand that each case is unique and demands a personalized approach, ensuring that our clients’ financial interests are protected while striving for the most favorable outcomes.

We offer a partnership to move through the divorce process with confidence and clarity. At Hurst, Robin & Kay, LLC, we bring a wealth of experience and a commitment to excellence in every case we undertake. We employ a strategic approach, leveraging our knowledge of state laws and our expertise in finance to advocate effectively for our clients. Whether through mediation or in court, our priority is to secure a settlement that respects the financial achievements of our clients and lays a foundation for their future prosperity.

Table of Contents

Marital Property

The division of marital property during a divorce can be challenging, especially in high-net-worth cases. As experienced divorce attorneys, we have a deep understanding of the many difficult factors involved in this process. Marital property division is not just about splitting assets. It’s about ensuring a fair and equitable distribution that acknowledges each partner’s contributions to the marriage.

Marital property includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. This can include real estate, bank accounts, investments, retirement accounts, business interests, and even debts. Distinguishing between marital and non-marital (individual) property is a critical first step in the division process.

Equitable Distribution vs. Community Property

Illinois, like most states, follows the principle of equitable distribution. This means that marital property is not necessarily divided equally but in a way that is fair and just, considering several factors. These factors include the duration of the marriage, each spouse’s economic circumstances, contributions to the marital estate, and future financial needs.

Valuation of Assets

In high-net-worth divorces, accurately valuing the marital property is essential. This often requires professional appraisals of real estate, businesses, and investments. Our Chicago high net worth divorce lawyer works with financial experts to get an accurate and fair valuation of all assets involved.

Dividing Complex Assets

High-net-worth divorces often involve assets like business interests, stock options, retirement accounts, and luxury items. Dividing these assets can be complicated, especially when they are not easily liquidated or have tax implications. We work with our clients to understand their priorities and develop strategies for dividing these assets in a way that protects their financial interests.

Dealing with Debt

Just as assets are divided, so too are debts. This includes mortgages, car loans, credit card debts, and any other liabilities incurred during the marriage. It’s important to make sure that debt division is handled equitably, taking into account each spouse’s ability to pay.

Tax Considerations

Divorce can have significant tax implications, especially for high-net-worth individuals. Understanding these implications is essential when dividing marital property. Decisions regarding asset division can affect future tax liabilities, and it’s important to make these decisions with a clear understanding of their tax consequences.

Legal Representation in Property Division

Handling the division of marital property requires not just legal knowledge but also a deep understanding of finance and tax law. At Hurst, Robin, & Kay, LLC, we combine our legal expertise with financial acumen to guide our clients through this process. Our goal is to ensure a fair division of property that protects our clients’ financial futures.

Preparing for the Divorce Process

Divorce is a significant life event that can be emotionally and financially draining. When dealing with a high-net-worth divorce, the challenges multiply, necessitating legal guidance to work through the process effectively. We offer our insights into preparing for the divorce process.

Understanding the Legal Landscape

Before initiating a divorce, it’s crucial to understand the legal framework governing divorces in Illinois. This includes knowing about the grounds for divorce, division of assets, alimony, and child custody and support. In high-net-worth cases, these issues become more intricate due to the larger asset portfolios involved.

Gathering Financial Documentation

One of the first steps in preparing for a high-net-worth divorce is to compile a comprehensive list of all assets, liabilities, income, and expenses. This includes bank statements, tax returns, investment accounts, real estate holdings, business interests, and any other financial documents. Accurate and thorough documentation is vital for achieving a fair and equitable division of assets.

Setting Realistic Goals

It’s essential to set realistic expectations for the outcome of the divorce. This involves understanding that divorce is about reaching an equitable settlement, not winning or losing. We encourage our clients to prioritize their goals, whether it’s retaining certain assets, securing spousal support, or ensuring a favorable custody arrangement.

Considering Alternative Dispute Resolution Methods

In many high-net-worth divorces, alternative dispute resolution methods like mediation or collaborative divorce can be effective. These methods often result in more amicable settlements and can be less time-consuming and costly than traditional litigation. We can help you determine if these methods are suitable for your situation.

Preparing for Emotional Challenges

Divorce can be emotionally taxing. It’s important to have a support system in place, including friends, family, and possibly a therapist. We also recommend staying focused on the future and the opportunity for a new beginning post-divorce.

Protecting Privacy

Privacy is a significant concern in high-net-worth divorces. Discretion is key in handling sensitive financial and personal information. We ensure confidentiality and work diligently to keep private matters out of the public eye.

Preparing for a high-net-worth divorce requires careful planning and expert legal assistance. We are committed to guiding our clients through every step of the process. If you are facing a high-net-worth divorce in Chicago, IL, we invite you to contact us. Together, we can overcome this challenging time with professionalism, sensitivity, and respect.

Warning Signs of Divorce

Divorce is often not a sudden decision, but rather the culmination of ongoing issues in a marriage. Recognizing the warning signs early can be critical in either taking steps to save the marriage or preparing for a potential separation. Our high net worth divorce attorney has observed several indicators that often precede the decision to divorce.

  • Constant Conflict

One of the most apparent signs of a troubled marriage is constant conflict. Arguments are normal in any relationship, but when they become the norm rather than the exception, it might indicate deeper issues. It’s particularly concerning if these conflicts do not lead to any resolution or growth in the relationship.

  • Lack of Communication

Effective communication is the cornerstone of any healthy relationship. When couples stop sharing their thoughts, feelings, or daily experiences with each other, it can signal a breakdown in the relationship. This lack of communication can lead to a feeling of disconnection and loneliness, even when both partners are physically together.

  • Loss of Intimacy

Intimacy is not solely about physical relations. It also encompasses emotional closeness and shared vulnerabilities. A significant decrease in intimacy, be it emotional or physical, can be a warning sign of marital trouble. It often reflects a deeper disconnection that has developed between the partners.

  • Living Separate Lives

When couples start living like roommates instead of life partners, it’s a red flag. This might involve having separate social lives, making decisions independently, or showing indifference to each other’s activities or well-being. Such behavior often indicates a detachment in the relationship.

  • Frequent Thoughts of Divorce

Regularly thinking about divorce or life without one’s spouse can be a subconscious indication that one is already preparing for a separation. It often reflects unresolved issues or dissatisfaction within the marriage.

  • Financial Disagreements

Money is one of the most common sources of conflict in marriages. Continuous arguments over finances, especially when it involves hidden assets or debts, can be a precursor to divorce. In high-net-worth marriages, financial disputes can be even greater.

  • Avoidance of Conflict

While constant conflict is a sign of trouble, so is the complete avoidance of it. When couples start avoiding any confrontation or discussion about their problems, it often means they’ve given up on resolving their issues. This avoidance can lead to a buildup of resentment and emotional distance.

  • Change in Priorities

If one or both partners start prioritizing other things like work, hobbies, or friendships over their marriage, it might indicate a shift in their commitment to the relationship. While it’s healthy to have individual interests, a complete shift in priorities away from the marriage can be a sign of trouble.

Chicago High Net Worth Divorce Infographic

What Constitutes Marital Property

Chicago High Net Worth Divorce FAQs

What qualifies as a ‘high net worth’ in a divorce case?

In the context of divorce, ‘high net worth’ typically refers to cases where the combined marital assets of the couple are significantly above the average. While there’s no strict legal definition, it generally involves assets in the millions. These cases often include investment portfolios, real estate holdings, business interests, and unique assets like art collections or intellectual property. Due to the value of the assets involved, high net worth divorces require specialized legal guidance to achieve a fair and equitable division of property.

How is alimony determined in high net worth divorce cases?

Alimony, or spousal maintenance, in high net worth divorces, is determined by considering a variety of factors including the length of the marriage, the standard of living established during the marriage, each spouse’s financial resources, and their future earning capacity. In high net worth cases, the calculation of alimony might also take into account the non-monetary contributions to the marriage, such as homemaking or raising children. The goal is to make it so that the lesser-earning spouse can maintain a lifestyle reasonably comparable to the marital standard.

Are prenuptial agreements more common in high net worth divorces?

Yes, prenuptial agreements are more common in high net worth divorces. These agreements are a proactive measure to protect assets and define financial terms in the event of a divorce. They are particularly important in high net worth cases to safeguard pre-marital assets, business interests, inheritances, and other significant financial assets. Prenuptial agreements can also stipulate terms for alimony and the division of marital property, helping to streamline the divorce process and minimize disputes.

How are business assets handled in a high net worth divorce?

Business assets in high net worth divorces can be difficult to evaluate and divide. If the business was started or acquired during the marriage, it’s typically considered marital property. The first step is to accurately value the business, which may require forensic accountants or business valuation specialists. Then, decisions must be made about whether the business will be sold, one spouse will buy out the other, or if the spouses will continue to co-own it post-divorce. These decisions are influenced by each spouse’s role in the business, their ability to manage it, and their future financial needs.

What role do tax considerations play in high net worth divorces?

Tax considerations play a significant role in high net worth divorces. The division of assets and alimony payments can have substantial tax implications for both parties. For instance, the transfer of certain assets might trigger capital gains taxes, and the tax treatment of alimony payments has changed following recent tax law revisions. It’s essential to have a divorce attorney who understands these complexities and can collaborate with tax professionals to structure a settlement that minimizes the tax burden for both parties.

Hurst, Robin & Kay, LLC, Chicago High Net Worth Divorce Attorney

30 n La Salle St #1210, Chicago, IL 60602

Contact Our Chicago High Net Worth Divorce Lawyer Today

Our Chicago high net worth divorce lawyer at Hurst, Robin & Kay, LLC, understands the unique challenges of this type of separation. We carefully handle the intricate financial aspects, ensuring equitable asset division, and providing personalized legal strategies tailored to each client’s specific needs. We are dedicated to guiding our clients with utmost professionalism and discretion, helping them to achieve a resolution that safeguards their financial interests and upholds their personal dignity. With our experienced team, clients in Chicago and the surrounding suburbs can expect a thorough and empathetic approach to what can be a life-changing legal process.