On behalf of Sheldon E. Finman, P.A. | Dec 29, 2019 | High Asset Divorce
The certainly may be times when the circumstances of a divorce case in Fort Myers necessitate the parties involved going to trial to resolve their issues. Yet formal divorce proceedings carried out in court can be costly and can cause a case to drag out much longer than might actually be necessary. It is for this very reason why divorcing couples are encouraged to act amicably towards each other throughout the process (as be open to coming to compromises), as such an attitude might ultimately prove to benefit all involved. Indeed, oftentimes court officials might even openly promote such cooperation.
Such is what occurred in the case of former New York City mayor Rudy Giuliani. He seemed poised to embark on a bitter dispute with his soon-to-be ex-wife as they worked through proceedings that had already had their fair share of heated moments. However, the judge hearing the case let both sides know that taking it to trial might not be in their best interest, given Giuliani notoriety as well as his current position as the personal attorney for the President of the United States. Thus, the couple worked to put aside their disagreements and have succeeded at settling their case out of court. The lawyer for Giuliani’s wife even indicated that the pair hopes to remain friends going forward.
The swift resolution of a divorce case does not simply make financial sense; it also exacts less of an emotional toll on those involved, making any future cooperation between them more likely to happen. Those who hope to achieve such an outcome may find an experienced attorney a valuable resource to making it happen.
On behalf of Sheldon E. Finman, P.A. | Nov 20, 2019 | High Asset Divorce
When you and your spouse are preparing for the property division phase of your Florida divorce, the inventory of your retirement accounts may have you feeling a little nervous. You may feel that it would be better to trade other assets in order to keep accounts intact and avoid penalties, and in some cases, that may be the way to go if you and your spouse can agree.
But different types of retirement accounts have different rules for how they can be divided in divorce. While some of them incur penalties, fortunately, your IRA does not.
According to the Entrust Group, the IRS will allow you to take certain actions with your IRA withoutpenalizing or taxing you for them. These both involve transfers:
• Transfer Incident to Divorce: This is a direct transfer. Through a domestic relations order from the court, your former spouse may make a request to the financial institution to have the funds transferred to his or her name.
• Renaming: Instead of your former spouse requesting a transfer, you create a new account and change the name on the original account to your ex’s. Then you transfer the amount of the funds that you are keeping to the new account. If your divorce settlement states that the entire account will become your former spouse’s property, then all you have to do is change the name from yours to his or hers.
Because your situation is unique, there may be some aspects that would make one of these division methods less advantageous. Therefore, this general information should not be interpreted as legal advice.
On behalf of Sheldon E. Finman, P.A. | Aug 1, 2019 | High Asset Divorce
No matter one’s income bracket, when a relationship ends, there is often emotional and mental fallout. However, when the couple involved are headed for a high asset divorce, the nature of the process may be much different than one between average-earning couples. Florida residents who are preparing for a divorce will likely benefit from the assistance offered by professionals.
When couples with modest means file for divorce, the process may get bogged down in the details of property division. Since there may be fewer assets, the need for an equitable split becomes more pressing. For those with a high net worth, the issue of an equitable division becomes less important. Instead, tax advantages and deciding how best to value rare collectibles and divide stock holdings may take more time and finesse. Those who have vast holdings and assets owned through shell companies may find the proceedings to be much more complicated.
The change in the tax code that eliminated the alimony deduction impacted high net worth couples in a disproportionate fashion as an estimated 20% of wealthy spouses benefited from this tax break. Another difference for the top-earning couples is establishing residency as many own several different properties in various locations throughout the world. The vast amount of holdings these couples possess makes the process more complex, with each side typically needing the guidance of several financial professionals to arrive at an acceptable settlement.
While the process of obtaining a high asset divorce is more complicated, in many situations, the proceedings are more amicable as the couple relies more on proxies to work through the details. An example is the divorce between Jeff and MacKenzie Bezos, which was resolved in short order based on the decision of the couple to end the relationship amicably. Florida residents who are hoping to resolve their divorce in a timely manner — without undue animosity — may wish to consult with an attorney who routinely handles these complex divorces.
On behalf of Sheldon E. Finman, P.A. | Apr 18, 2019 | High Asset Divorce
Those who are considered to be extraordinarily wealthy attract more than their fair share of media attention. To that end, when a marriage ends, the ensuing high asset divorce typically draws a great deal of attention and speculation from news outlets and social media. Fortunately, for most Florida residents, their privacy will remain intact while they work through the details of their own dissolution.
A divorce is a complicated undertaking no matter the circumstances. There are many important decisions that must be resolved, and if a divorce involves minor children, then it can become even more complex. For wealthy couples who did not have a prenuptial agreement in place, the costs of obtaining a divorce could be devastating. In light of the recent divorce between Amazon founder Jeff Bezos and his former wife MacKensie, a list was compiled of the most expensive divorce settlements to date.
Several of the divorces that were on the list involved business owners who were at risk of losing a significant portion of their control and investments. Though the former Mrs. Bezos could have sought a 50 percent share of Amazon’s stock, she elected to retain only a quarter of the company’s stocks and relinquished any claims to some of her husband’s other ventures. Nevertheless, her settlement netted her an estimated $35.6 billion in assets. Other costly divorces have resulted in settlements that ranged between $400 million to $1.7 billion in assets.
Regardless of a couple’s financial standing, a divorce is an unsettling process. If there are significant assets at risk, then the settlement process may become even more contentious. Florida residents who are worried about how their high asset divorce will impact their current and future finances may be best served by consulting with an attorney who is skilled in drafting a settlement that protects one’s financial well-being.
On behalf of Sheldon E. Finman, P.A. | Apr 4, 2019 | High Asset Divorce
Though not pleasant for engaged couples, discussions involving a possible future divorce are a prudent measure. Approximately half of all marriages end in a divorce, and those who own considerable assets may do well to prepare for a high asset divorce even before the wedding. Florida residents who are concerned about such an eventuality can take steps to ensure their financial security.
If either party cannot have a serious conversation about the possibility of a divorce, it may indicate that communication problems already exist. When one or both parties own considerable assets, it may be best to enter into either a pre- or post-nuptial agreement. Ideally, both spouses will be knowledgeable about the property division laws in their state and will set up their finances in the manner best suited to their needs. If either partner owns property, it is recommended that he or she remains separate and that tax and other property related liabilities are maintained under the individual’s name.
Spouses may wish to set up a revocable trust to manage their personal assets. Doing so could prevent those assets from being subjected to division in a future divorce. Spouses are encouraged to maintain thorough records of all of their major transactions and to keep a record of their credit scores at the time of their marriage. It is also helpful to maintain a record of personal wealth both before and during the marriage. If the value of assets increases, careful record keeping can determine whether the increase was attributed to individual or joint efforts.
Though no wants their marriage to end, the reality is that many marriage do not survive. Those who own considerable assets are acting prudently if they plan for a possible high asset divorce. Florida residents who are concerned about how their divorce will impact their finances may be best served by seeking the guidance of an attorney who can structure a settlement that will provide for their current and future needs.
On behalf of Sheldon E. Finman, P.A. | Feb 14, 2019 | High Asset Divorce
People who get married in Florida often expect to stay together for many years to come. However, not all marriages make it for a number of reasons, ranging from infidelity to financial problems. Here is a peek at the age that many people who are married today might go through divorce, whether it is a high asset divorce or a more typical one.
Researchers recently took a look at individuals’ marital outcomes at different ages in 2017. After looking at respondents’ answers regarding whether they were currently married and how many times they had been married, they learned that around 10 percent of people who were 30 years old had already gotten divorced. This percentage ended up reaching a maximum of 41 percent for those age 63.
The researchers furthermore looked at 1980 and 1960 marital outcome data. Through their research, they discovered that the number of people between 20 and 29 who had already ended their marriages during these years was a lot larger compared with the number in 2016. On the flip side, the number of individuals who had ended their marriages near their golden years was a lot smaller in 1980 and 1960, compared with 2017.
The reality is that divorce — whether it is a high asset divorce or one that involves more modest asset levels — can be a trying time no matter how old or young a person is. This is because two divorcing individuals may not agree on how to address issues such as asset distribution and alimony, and if they have young children, they may be at odds about child custody. The good news is that an attorney in Florida can help someone who is going through divorce to make educated decisions regarding these issues. The attorney’s aim during a divorce proceeding is to make sure that his or her client’s best interests are safeguarded long term.
On behalf of Sheldon E. Finman, P.A. | Jan 24, 2019 | High Asset Divorce
The majority of high-net-worth couples sign a marital agreement before they wed or at some point during the marriage. However, shortly after Amazon’s founder Jeff Bezos and his wife, MacKenzie, announced their intention to divorce, it was learned that the couple reportedly do not have a prenup. Florida residents who are considering filing for their own high asset divorce may be interested in learning how this dissolution will be handled.
The state in which the Bezoses reside is one of a handful of community property states. In these states, assets that were acquired during the marriage will be divided equally between the spouses — in the absence of any marital agreements. Since Jeff Bezos started Amazon after his marriage, the company’s value could possibly be split between the spouses. Another option, which may appeal to investors more, would be to pool the stock and share joint ownership. At this time, there is an estimated $137 billion worth of assets to be split between the former spouses.
In general, a high-net-worth dissolution is more complex than the average divorce. A divorce involving stocks, bonds and a business will take much more time and finesse. In general, wealthier couples tend not to battle as much over alimony and child support since a settlement is usually more than adequate to meet each former spouse’s needs.
Due to the heightened public scrutiny surrounding the Bezos divorce, the former couple will likely seek a private settlement agreement. In the end, it is anticipated that MacKenzie Bezos will become the wealthiest woman while her former husband may lose his standing as wealthiest man. Regardless of the notoriety of couple involved, every high asset divorce requires careful consideration to ensure that each party receives a settlement that equates with the effort that a spouse invested into the marriage. Florida residents may wish to seek the skilled assistance of an attorney who focuses on these types of divorces.
On behalf of Sheldon E. Finman, P.A. | Jan 17, 2019 | High Asset Divorce
No matter the individual circumstances, a divorce is seldom a process that anyone joyfully anticipates. However, those who will be enduring a high asset divorce often face complexities that the majority of divorcing couples will not have to unravel. Florida residents who are preparing for a high net worth divorce may benefit from having clear priorities.
Recently, the founder of Amazon, Jeff Bezos, and his wife, MacKenzie, issued a joint statement concerning their intention to divorce. The former couple announced their hopes for an amicable parting that would permit them to remain parents and partners while allowing them to pursue a new life as individuals. Though their intentions are sound and admirable, the realities involved in a high asset divorce often make for a contentious split, unless the parties are able to focus on their priorities and are willing to compromise.
One of the most important aspects of enduring a high net worth divorce is to assemble a team of professionals who can ensure that one is protected financially while also providing for the well-being of the family, especially children. Once the team is assembled, allowing them to work for the best outcome involves communicating one’s vision and goals effectively and maintaining a business-like approach to the end of the marital contract. Though many wealthier couples have signed pre- or post-nuptial contracts, these do not always withstand challenges during litigation.
Couples such as the Bezos’ may seek to safeguard their privacy by working out which points are most important to each party and then striving to arrive at the best compromise possible. Though this particular dissolution will be unique based on the value of Amazon alone, there are many points that may apply to other couples preparing for their own high asset divorce. Those who are residing in Florida may be best served by enlisting the assistance of an attorney who is well-versed in successfully handling these types of high net worth divorces.
On behalf of Sheldon E. Finman, P.A. | Dec 26, 2018 | High Asset Divorce
Those who have amassed considerable assets during their lifetime may have concerns about entering into a marriage. In the event that the relationship becomes unsustainable, it is possible that an individual could face significant losses if he or she is ordered to pay a former spouse in the aftermath of a high asset divorce. Florida residents who are preparing for a dissolution may have many concerns about protecting their financial well-being in the future.
According to one former wife’s account, her ex-husband elected to remain in jail rather than pay an $18 million settlement. The 82-year-old man reportedly fled the country after the divorce judgement was announced in an apparent effort to avoid paying his ex-wife. He was arrested after he had returned to the country for a relative’s college graduation. He has been in jail for the past several months after alleging that he does not have the financial resources to either post bail or pay his former wife.
The ex-wife claimed that her husband began moving his assets into overseas accounts shortly after agreeing to her demands for a divorce in 2012. She further alleges that he maintains several bank accounts in a variety of locations around the world and chooses to remain in custody to spite her. The ex-husband claims that he lost the majority of his assets through failed banks and other unexpected events. He asserts that his remaining $5 million is located in an account that he cannot access due to his incarceration.
His attorneys have been unable to secure his release even though his poor health and advanced age make him a poor flight risk. A judge disagrees and has refused his release until he arranges for his ex-wife to receive the amount she is due. Florida residents who are struggling to resolve the issues involved in their own high asset divorce may be best served by obtaining the assistance of a skilled family law attorney.
On behalf of Sheldon E. Finman, P.A. | Nov 8, 2018 | High Asset Divorce
The hard work and effort that one puts into building a business is often hard to measure concretely. However, when a business owner finds him- or herself facing a high asset divorce, having a solid plan in place can preserve the company’s future. Florida residents who are preparing to file a divorce petition have some tools that may help safeguard their business.
One of the first tools is a prenuptial agreement. Though these contracts used to be common only among the wealthiest, or celebrities, they have become more mainstream. In the event that a spouse has worked to build a business before marriage, a prenup can ensure that the other spouse can be compensated with other assets while protecting a company’s future. If a business was started after a marriage, the parties may be able to enter into a postnuptial agreement that spells out how each party can be accommodated without having to dismantle the company.
Along with a prenup between the spouses, it is recommended that larger business plans include a divorce clause. This can stipulate how a former spouse will be compensated without compromising the company’s future. Another suggestion is for a business owner to come to a decision regarding how a business will be valuated. There are three methods of doing so, and each may arrive at a different value, depending on the nature of the business.
Some business owners may be tempted to reduce their company’s value. Doing so may backfire, as a court could rule that the owner provides for the other spouse based on the value of the company before the actions were taken. Lastly, professionals recommend that a business owner seeks to determine the true worth of his or her company before filing for a dissolution. Florida residents preparing for a high asset divorce may be best served by consulting an experienced family law attorney who can help draft a settlement agreement that best meets their needs.
