Reviewed by Michael Colin Barrows, Esq.
Key Takeaways
- New York has no legal definition of a high net worth divorce. The million-dollar figure is convention, not law.
- Every divorce follows the same equitable distribution process regardless of size.
- Support formulas apply only up to income caps: $193,000 for child support and $241,000 for maintenance as of March 1, 2026.
- Above those caps, the court has discretion and must explain its reasoning.
- The valuation date is often the most contested issue, and it can move the number substantially.
There is a lot to be disputed during divorce proceedings, such as child custody, child support, and alimony. But this is especially the case if you and/or your spouse are high-net-worth individuals. With your and your spouse’s complex assets and financial interests, the most complex matter at hand will undoubtedly be that of property division. Continue reading to discover what you should expect in your high net worth divorce process and how an experienced Long Island high net worth divorce lawyer at Barrows Levy PLLC can help you protect your assets.
What Does the State of New York Consider a High Net Worth Divorce?
It’s important to understand that no legal statute, threshold, or process defines what a high net worth divorce is, as this is a purely descriptive term. However, many often cite one million dollars as the threshold, though this is not a hard and fast rule.
It’s important to understand that all divorces in New York will proceed in the same way, including the equitable distribution process under Domestic Relations Law § 236(B).
Does Net Worth Impact Divorce in Any Capacity?
It’s important to understand that net worth can impact the domestic support awarded in a divorce. Both statutory formulas for child support and alimony apply up to fixed income caps, which are adjusted every other year.
As of March 1, 2026, the combined parental income cap for child support has increased to $193,000, and the maintenance payor cap rose to $241,000. Income above those numbers does not go ignored, as the court retains discretion over how much of it can be reached, and the court must explain the reasoning. That discretion, rather than any label, is what makes higher-income cases less predictable.
What Assets Will Be Divided in a High Net Worth Divorce?
New York is an equitable distribution state, which means that there are laws in place for the division of property between spouses to be equitable and fair. However, with the magnitude of assets and flows of income that high-net individuals possess, this distribution is not so straightforward. Below are examples of assets that need to be looked at with special care:
- Multiple business ownership interests, regardless of whether they are solely or jointly owned.
- Multiple properties, including vacation and rental properties.
- Investments, including stocks, bonds, and debentures.
- Deferred income, including stocks.
- Retirement assets, including 401(k)s and pensions.
- Collectibles, such as antiques, artwork, memorabilia, expensive cars, and jewelry.
It’s also important to understand that only marital property is subject to division during the equitable distribution process. As such, assets brought into the marriage and inheritances or gifts received from a third party (anyone other than the spouse) will remain separate and are not subject to distribution. However, under certain circumstances, assets may be mixed with marital funds or the value of assets improves due to a spouse’s efforts during the marriage. In the event an asset appreciates, only the appreciation will be considered marital property.
If this occurs, assets that were originally held separately can be considered marital property and may be subject to distribution.
How Do Courts Determine What Is Equitable?
To determine what property is considered equitable, the courts will consider a number of factors outlined under § 236(B)(5)(d). These factors include:
- The length of the marriage
- The age and health of each spouse
- The income and property of each spouse at the time of the marriage and at the time of the divorce
- The loss of inheritance or pension rights
- Both direct and indirect contributions made to the marital estate, including domestic contributions
How Are Assets Valued in a High Net Worth Divorce?
In high net worth divorce cases, it’s important to understand that the issue is not in dividing the assets, but in valuing property. Many assets like closely held businesses, partnership interest, unvested stock options, or private collections typically require valuation by an expert. Additionally, depending on when the valuation is dated and the method used, the value of an asset may differ. Layered on top of that are tax consequences and concerns about which court can access these assets held abroad.
One matter that is often contested is the valuation date itself. In accordance with § 236(B)(4)(b), the court can set the valuation date from when the divorce is filed to the trial, and may set a different date for each asset.
Generally, active assets, like business or professional practice, are valued as of commencement, while passive assets, like securities, are valued closer to the date of the trial. Where a holding falls during this timeline can significantly impact the figure.
How Can I Protect My Assets in a High Net Worth Divorce?
First and foremost, when going through a high net worth divorce, it’s important to understand that the automatic orders are already working in your favor. From the moment the action begins, both spouses are barred from selling, transferring, encumbering, or concealing property without written consent or a court order.
For one, our firm will work with a forensic accountant on your behalf throughout your high net worth divorce proceedings. This is important when settling property division agreements because it is common for a high-net spouse to hide assets to keep more than what is fair. The accountant will uncover all tax returns, credit card statements, property deeds, and other investments to prevent this from happening.
As for precautionary measures go, it may be wise to draft a prenuptial agreement with your future spouse if you are not yet married. This document will allow you to outline what property belongs to which spouse. If you are already married, a postnuptial agreement will serve a similar function. Our firm will then use this agreement to fight for the protection of your assets in court.
Contact Our Experienced New York Firm
If you require assistance with navigating these assets, do not hesitate to reach out to a skilled divorce attorney in Long Island today. At Barrows Levy PLLC, we understand how difficult it can be to navigate these matters, which is why we will do everything in our power to help you through these complex times. Contact us today to schedule a consultation with one of our experienced attorneys.
