Divorce for High Net-Worth Individuals: Unique Challenges
At Carbone Law Firm, we understand that divorce is never easy—but when substantial assets, business interests, and complex financial portfolios are involved, the stakes rise exponentially.
As a Massachusetts family law attorney with over two decades of experience, I have guided many high net-worth individuals through divorces that require strategic planning, expert collaboration, and meticulous execution. These cases demand a different level of sophistication compared to a standard divorce.
Here, I will walk you through the unique challenges faced in high net-worth divorces—and how the Carbone Law Firm approaches them.
1. Complex Asset Division
Massachusetts follows the principle of equitable distribution, meaning marital assets are divided fairly, not necessarily equally. In high-asset divorces, the division process requires comprehensive identification and valuation of:
Investment portfolios
Stock options and RSUs
Real estate holdings (often in multiple states or countries)
Retirement accounts
Crypto currency
Art collections, jewelry, and luxury goods
Offshore accounts and trusts
At Carbone Law Firm, we work closely with forensic accountants, tax experts, and appraisers to ensure no asset is overlooked or undervalued. Transparency and accuracy are critical when navigating significant marital estates. We also have experience in tracking down such assets in other jurisdictions.
2. Business Valuation and Division
When a closely held business or professional practice is part of the marital estate, valuation becomes highly technical—and highly contested. Massachusetts courts consider both the value of the business and any income it generates when determining division and support. THis is especially critical with closely held business wherein one of the parties to the divorce is, in effect, the driving force behind that person’s business. Often, people going to court will say that “I am my business, so without me the business is worthless.” They may even say that they could never sell their business, because their customers would never go to somebody else. This makes litigants believe- erroneously - that their closely held business or their spouse’s closely held business has no value. This is nearly always untrue.
Expert witnesses can evaluate and reconstruct business records to provide comprehensive valuations that courts routinely accept. Our firm partners with credentialed valuation experts to assess:
Fair market value
Goodwill (distinguishing between enterprise and personal goodwill)
Future earning capacity
Buy-sell agreements and ownership structures
We are also skilled at addressing "double-dipping" concerns—ensuring that business income is not unfairly counted both as an asset and as a source of support.
3. The Importance (and Limits) of Prenuptial Agreements
While a well-drafted prenuptial agreement can protect substantial assets, it is not infallible. In Massachusetts, a prenup must meet two standards:
Fairness at the time of execution
Fairness at the time of enforcement
If circumstances have shifted dramatically—such as major financial growth or health challenges—the court may find parts of the agreement unconscionable and therefore unenforceable. At Carbone Law Firm, we scrutinize prenups with a critical eye, ready to defend them or challenge them depending on what serves our client’s best interests.
4. Safeguarding Privacy
Divorce proceedings are public by default in Massachusetts, which can pose serious concerns for business owners, executives, and public figures. To protect our clients’ privacy, we pursue strategies such as:
While in Massachusetts financial documents are, by rule, impounded, parties, routinely, reference them in their pleadings. Its important to ensure that various arguments that reference financial holdings are also impounded.
Seeking confidentiality agreements during discovery. This is especially true when third-parties (most notably the aforementioned experts) are going through various financial records, including employee, vendor and customer names. It is incumbent on every business owner to protect their confidential information and we at Carbone Law Firm take that responsibility very seriously.
Utilizing private mediation and arbitration when possible.
Protecting your reputation is a strategic priority at every stage of the process.
5. Sophisticated Support Calculations
Standard child support and alimony guidelines often do not neatly apply to high earners. In cases where income exceeds Massachusetts guideline thresholds, courts exercise wide discretion. We ensure that support orders:
Reflect the marital lifestyle appropriately.
Are sustainable for our clients
Consider tax impacts and future financial stability. This is especially true with families who have child support and alimony awards in the same case wherein the court requires tax impacts to be part of the underlying findings of the court.
Our approach balances aggressive advocacy with pragmatic, forward-looking financial planning.
FAQs: High Net-Worth Divorce in Massachusetts
Q: What defines a high net-worth divorce?
A: Generally, divorces involving over $1 million in marital assets, significant business interests, or complex investment portfolios are considered high net-worth. These cases demand a specialized legal strategy.
Q: Will my prenuptial agreement automatically protect all my assets?
A: Not automatically. Massachusetts courts review prenuptial agreements for fairness both when signed and at the time of divorce. Life changes like having children or major financial shifts can affect enforcement.
Q: How is a business divided in a divorce?
A: It depends. A business may be subject to division or offset with other assets. Valuation is critical, and protecting operational continuity is often a priority if one spouse wishes to retain ownership.
Q: Can I keep my divorce private?
A: Complete privacy is not automatic, but options like impoundment motions, private mediation, and confidentiality agreements can significantly limit public exposure.
Q: How do courts calculate support if income exceeds standard guidelines?
A: Courts consider the lifestyle enjoyed during the marriage, the needs of the parties, and fairness. There is greater discretion in high-income cases, making tailored advocacy essential.
At Carbone Law Firm, we bring a proactive, discreet, and experienced approach to high net-worth divorces. If you are contemplating or facing divorce and have substantial assets at risk, contact us for a confidential consultation.
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Serving clients throughout Massachusetts because, Nobody Should Get Divorced Alone.