Should High-Net-Worth Individuals Hire Different Lawyers?

As a high-net-worth individual, you may live a different life compared to the average person. Your shopping habits might be distinct, and you may invest your funds in ways that lower-income people do not even consider. While earning high sums is certainly a good thing, it can also lead to unique problems that average individuals never encounter. But what about divorce? Do high-net-worth individuals really need to choose their divorce lawyers more carefully? If so, what kinds of characteristics should you search for in a North Carolina high-net-worth divorce attorney?

High-net-worth individuals may benefit from hiring lawyers who have experience with certain family law issues. These issues tend to appear more often in high-net-worth divorces, and it may help to hire a legal professional who has dealt with these problems in the past. If you work with a lawyer who only has experience with lower-income individuals, they may not know how to overcome certain hurdles.

If you are ending a high-net-worth marriage, there is a good chance your ex is already seeking out a lawyer who has specific experience with these cases. As a result, you may need to do the same in order to compete in the legal arena. Remember, your ex may be required to pay your legal fees if there is a considerable income disparity. In other words, spouses who earn considerably more than their exes may be ordered to pay both sets of legal fees by family courts in North Carolina.

Many high-net-worth divorces involve complex assets, and it makes sense to choose a lawyer who has experience with these assets. The definition of a “complex asset” can be somewhat elusive, and there are many potential examples. Generally speaking, these assets are difficult to appraise, worth more than $1 million, or abstract in nature. Here are just a few complex assets high-net-worth spouses may need to divide during divorce:

• Rental properties
• Intellectual property
• Collectibles
• Fine art
• Cryptocurrency
• Non-vested assets
• Stock options
• Life insurance policies
• Retirement products
• Trusts
• Businesses

Lawyers who encounter these complex assets for the first time may be unsure of how to proceed. Lawyers with high-net-worth experience, however, may have developed tried-and-true strategies for these complex assets.

You might also benefit from working alongside lawyers who have experience with child support in high-net-worth families. Unlike parents with average or low incomes, high-income individuals adhere to different sets of standards when approaching child support. This is because children in wealthy families generally have access to more resources, luxuries, and opportunities compared to other children.

As a result of these circumstances, family courts abandon the normal, pre-set calculation methods for child support. Instead, they consider each family on a case-by-case basis, taking into account factors like expensive hobbies, access to expensive healthcare, private school tuition, and so on.

A lawyer who has experience with these unique factors and formulas can help high-income parents pursue positive outcomes. In contrast, a lawyer who has never before dealt with these situations may struggle with unfamiliar challenges.

Concealed assets are relatively common among high-income spouses. These financially savvy individuals may have developed a number of asset protection strategies over their careers, and they may know how to make their wealth virtually invisible to the casual observer. Some of the most common asset concealment strategies include:

• Offshore accounts
• Trusts
• Gifts
• Overpayment of taxes
• Cryptocurrency
• Corporate loan schemes
• Precious metals
• Deferring bonuses or raises

Although the average lawyer might struggle to identify and locate these concealed assets, a more experienced divorce attorney may know exactly what to look for. Locating these assets could be critical for dependent spouses, and it may be challenging due to their lack of financial knowledge. A lawyer who has experience with high-net-worth divorces may also call upon other professionals to help – including forensic accountants.

If you have been searching for an experienced high-net-worth divorce lawyer in North Carolina, look no further than Arnold & Smith, PLLC. Over the years, we have helped numerous high-net-worth individuals in the Tar Heel State pursue positive outcomes in their divorces. We know that higher-earning people encounter many unique issues when it comes to divorce. With our experience and resources, you can approach these challenges with confidence. Book your consultation today to discuss your next steps in more detail.