High Net Worth Divorce Lawyer in Fairfax, Virginia
When you go through a divorce, there’s a lot to it. It can be extremely trying, especially if property, children, money, alimony and assets are involved. You and your partner need to settle things civilly, but that can be hard to navigate. That is why you should hire the right high net worth divorce lawyer in Fairfax VA that best suits your needs.
Why Is A High Net Worth Divorce Different From Regular Divorces?
High net worth divorces differ from typical divorces because there are unique challenges involved. Divorce cases like this often involve assets with high values, or the asset’s value is difficult to determine. This can quickly complicate a divorce.
May Law, LLP is experienced in handling high net worth divorces in Fairfax, Virginia, so if you’re going through a high net worth divorce, reach out to them.
What Is A High Net Worth Individual?
This term is used primarily in the investment advisor community to indicate a client that has a specific level of liquid assets. But a question that comes up when discussing high net worth divorces is: what are liquid assets, or liquid net worth?
Say Person A is worth $116 billion, he cannot go out and spend $116 billion. Liquid net worth for Person A will be a much smaller number than his net worth.
Define Net Worth and Liquid Net Worth
The definition of net worth is your total assets, minus your total liabilities. And in the same vein, assets are anything valuable that you own, while liabilities are anything you owe. So some examples of assets are money, stocks, cars and even real estate. Liabilities are credit bills, car loans, student debt, and more.
Liquid net worth is the amount of net worth that could be converted to cash, in one day, if needed. So your liquid net worth subtracts your liquid assets from your liabilities. What’s left over is your liquid net worth. Liquid assets are cash, stocks, and bonds.
Liquid Net Worth: Types
There are three main types of liquid net worth, cash, stocks and bonds.
Cash can take many forms:
- Checking accounts
- Savings accounts
- High yield savings accounts
- Money market accounts
With the above accounts, you could withdraw your money and use it that same day.
Stocks can take other forms as well:
- Stocks
- Index funds
- Mutural funds
- ETFs
- Other forms of equity in a brokerage account
- 401(k)
- Retirement accounts
If you convert your equity into capital gains, you will owe taxes on it. This will cause it to decline slightly from its original price.
Other assets that may come up during a high net worth divorce, that may cause you to seek a high net worth divorce lawyer Fairfax VA to handle your divorce are:
- Real estate
- Cars
- Motorcycles
If your family is undergoing a high net worth divorce in Fairfax, Virginia, seek a lawyer that knows how to help you get the most out of your divorce. The lawyers at May Law LLP know you put a lot of money and assets into your marriage, therefore, they’re going to help you get that back.