Home » Affordable Divorce Attorney for High Net Worth Clients on Long Island

High Net Worth Divorce Defined: What You Need to Know

I define a high net worth divorce as one involving complicated and substantial marital assets, normally above $1 million for the marital estate, and usually $5 million+ for ultra-high-net-worth cases. When we take on a high net worth divorce we expect to have to deal with partners who own businesses, multiple Long Island real estate properties in the Hamptons, North Shore or out of state, retirement benefits, trusts, offshore accounts, etc. All of these require valuation, tax planning work, and forensic investigation, so I emphasize immediate identification and preservation of assets to prevent potential dissipation of assets during the divorce while limiting the costs of hiring experts for testimony.

Criteria for High Net Worth Divorces on Long Island, New York

In defining a high net worth divorce, we look for a combination of quantitative and qualitative measures: the total marital estate is usually over $1 million, one or both of the parties to the divorce owns a business, there are stock options to deal with, significant pension or 401(k) balances, an extensive portfolio of real estate, international trusts, and a high range of income (often $250,000 or more). These matters often create additional complications to the “standard”, less complex divorce. On Long Island, New York courts also take into account commingled premarital property, family partnerships, and minority ownership in businesses that require valuations and testimony from experts.

Challenges for High Net Worth Divorces Involving Significant Assets

Valuation disputes over privately held businesses, deferred compensation, artwork, offshore account, business goodwill, tracing commingled funds and uncovering hidden transfers are common issues in high net worth divorces. We’ve often seen business valuations swing by 20% to 40% and disputes over hidden transfers and unreported income can extend the process with months of forensic discovery, turning what should be routine matters into high stakes litigation requiring specialized advisors.

Tax implications on asset division, working out spousal maintenance for six-figure incomes, and business confidentiality and disclosure issues are other challenges posed by high net worth divorces.

To handle these issues, we engage forensic accountants and business valuation experts in the very beginning of the divorce process so that we can understand the marital asset value and create litigation or settlement strategies to protect our client’s interests.

In one matter, I handled a divorce that included a health care based business that was valued at $3.2 million. The spouse claimed a 60% marital interest. A valuation expert separated premarital goodwill and post separation revenue, and arrived at a 45% marital interest, providing a negotiated payout that allowed the firm to avoid approximately $120,000 of litigation and expert fees.

In high net worth divorces, you can anticipate spending between $10,000-$40,000 for full valuations, and approximately $200-$600 per hour for forensic accounting, depending on the scope of work.

Balancing Cost vs Expertise in High Net Worth Divorces on Long Island

Because costs for forensic accounting and property valuations can get expensive, we balance the need for the best experts with the reality of litigation costs. We try to control where you spend money on your case, including valuations, forensic accounting, and expert testimony. A full business evaluation can cost between $5,000 – $30,000, and forensic accounting is usually billed at $200-500/hour, so I do my best to negotiate the scope, phases, and cap budget to provide access to experts who can help you protect your net worth without breaking the bank and depleting your assets.

Leveraging Mid-Sized Firms to Find Affordable Solutions

I rely on mid-sized firms on Long Island (like ours) to provide specialized services with lower overhead than Manhattan firms. This model gives you experienced experts that know Nassau and Suffolk courts, in-house case management, and reduced blended rates from vetted outside experts. This enables our clients to receive excellent representation and substantial savings on fees.

Ways to Reduce Costs and Expenses in a High Net Worth Divorce

When possible, we use mediation, phased discovery, and joint expert appointments keep fees manageable for our high net worth divorce clients. Mediation can often save clients 30% to 50% on overall legal fees compared to drawn out litigation. There are also limited protocols for discovery to avoid subjective document review and open-ended depositions.

Then, we focus on other specific cost controls. If the parties to the divorce appoint one neutral valuator for both parties, expert fees can be reduced by up to 50%. If the parties agree upon a valuation date in advance, the valuator is not spending time re-doing work for each client and cuts the resulting fees in half.

I limit e-discovery by creating a targeted search term list and custodians to minimize vendor fees. I negotiate hourly caps and hourly to flat transitions for experts, and I prioritize temporary orders to limit fees and stabilize cash flow. These methods regularly shave tens of thousands of dollars from total divorce expenses while achieving the same quality outcome.

Essential Attributes of a Cost-Effective High Net Worth Divorce Attorney

My practice emphasizes marked, cost-conscientious representation. I balance extensive marital asset experience with efficiency by focusing on reasonable discovery. I draw on a trusted network of valuation experts for seven-figure estates. I aggressively negotiate to avoid pointless litigation and prepare fee agreements to make your exposure more predictable. This ensures the protection of your assets, businesses, retirement accounts, real estate etc., without being surprised by open-ended hourly billing.

Local Knowledge of the Nassau County and Suffolk County Court Systems

My familiarity with Mineola, Central Islip and Riverhead family and supreme court procedures and personnel enables me to think strategically to achieve the best outcome for my clients. I know which Nassau and Suffolk matrimonial courts seek an early settlement and which judges and attorneys push for full forensic financial disclosure. I use that experience of typical local guidelines to time filings choose jurisdictional advantages and propose mediation dates that align with local court calendars to move your case efficiently and cost effectively through the system.

Access to Experts to Value or Assess Financial Assets

I coordinate with forensic accountants, CVAs, CPAs and appraisers to value businesses, the value of stock option packages and other complicated investment quantifications. I instruct experts to address discrete issues; income tracing, hidden transfers, valuation as of a particular date or valuation calculation based on specific references. I have the added value of estimating QDRO structuring for ERISA public or private pension assets, including the additional modeling on option-based approaches when evaluating stock equity compensation.

I vet experts on credentials (CPA/CFF, CVA, ASA), prior matrimonial experience and turnaround times before I scope the engagement with any expert. Then I narrow engagement scopes, utilizing sample based financial forensics or single issue valuations to keep your fees manageable. I regularly propose jointly retained neutral experts on discrete questions and clearly define the potential for duplicative expert retention to eliminate it. I require a written scope and delivery expectations in writing, so you have some expectation/calculation of cost and time commitments before engagement.

Smart Strategies to Reduce Divorce Costs

I focus on targeted strategies that cut legal fees without affecting your results, including early asset inventories, targeted discovery requests, one forensic accountant, and phased negotiations. For some Long Island clients, I have cut fees by narrowing deadlines on valuation, saving them $15,000 to $40,000 just by limiting duplication of experts and addressing liquidity prior to filing.

The Benefits of Mediation versus Traditional Litigation

Mediation typically costs between $5,000-$20,000 and often resolves cases within weeks, while contested high-asset litigation is commonly a $75,000-$250,000 process that can take months or years. I mediated value and ownership of complex estates and nuanced business disputes which would have turned into a courtroom fight for a conservatively projected expense of $140,000, with mediation costs of under $10,000. Mediation further preserves privacy and gives you control of outcomes, as well as reduced expenses for expert witnesses considerably.

The Role of Prenuptial Agreements

Prenuptial agreements that logically identify interests in business interests and spousal support with clear details, effectively halve contested litigation time. In past cases, this has saved my clients between $50,000-$200,000.

Local Knowledge of Long Island, NY

I regularly handle high net worth divorce cases in Nassau county and Suffolk county, so I can navigate local court and expert timelines efficiently. Traditional contested high-asset cases on Long Island typically take at least 18-36 months, while mediated resolutions can close in 3-6 months. I take advantage of my relationships with the Nassau County courts in Mineola and the Suffolk County courts in Central Islip and Riverhead, local valuators and local financial professionals to efficiently move the discovery process along, avoid unnecessary depositions, and reduce your expenses to dissolve your marriage efficiently.

Why Local Counsel is Better than Big City Firm Representation

Hiring a local attorney can save you thousands of dollars that a New York City firm will charge you simply for travel fees on top of hourly rates to drive from Manhattan out to Long Island. I have saved many clients tens of thousands of dollars in travel fees alone a NYC law firm will charge to visit Nassau or Suffolk courts where they may not understand the local timing, court rules, etc., driving costs up even more. We utilize reliable Long Island forensic accountants for expert testimony, quicker scheduling at more cost-effective rates, while working as a team that can schedule depositions and hearings/without duplicating work that increases your bill so we can preserve your wealth and not waste it on litigation.

Understanding New York’s Equitable Distribution Laws

I explain to clients that New York is an equitable distribution state, not a 50-50 property division split state. There are 13 statutory factors that courts will consider in dividing property in a divorce, including, but not limited to, the length of the marriage, the income of the parties to the divorce, and wasted assets.

Generally, marital property would include income and appreciation on assets during the marriage, while separate property includes premarital property, gifts, and inheritances. These cannot be transmuted unless commingled. Without question, classification of assets drives valuation and a strategy for negotiating your case.

Hiring an Affordable Divorce Attorney Is Critical to Preserve Your Assets in a High Net Worth Divorce on Long Island

At Hornberger Verbitsky, P.C. we use our extensive experience representing Long Island clients in high net worth divorces in Nassau County and Suffolk County to preserve your assets. We organize the common challenges involved in high asset divorces and develop strategies to keep more of your hard-earned property in your divorce. We utilize our experience in Nassau and Suffolk County courts, local forensic accountants, valuators and financial experts to keep your costs down in order to protect and preserve your wealth. Contact us today at 631-923-1910 for a free consultation and case evaluation for your high net worth divorce.