Poppe & Associates, PLLC - Blog , High-Net-Worth DivorcePoppe & Associates, PLLC - Blog , High-Net-Worth Divorcehttps://www.miapoppe.com/blogs/High-Net-Worth-DivorceSun, 23 Aug 2026 22:06:18 -0700http://zoho.com/sites/<![CDATA[Addressing deferred compensation in a divorce]]>https://www.miapoppe.com/blogs/post/addressing-deferred-compensation-in-a-divorce
Compensation packages for executives and others in high-impact professions often include a variety of different types of pay. Deferred compensation has become a common way to incentivize both loyalty to an organization and a drive to meet specific performance metrics. By offering to provide certain compensation after a set amount of time or based on an employee's overall performance, a company can motivate workers to continue their employment and put in the best work possible. Deferred compensation can often be worth tens of thousands of dollars. However, it may not be available for distribution for years. How do those preparing to divorce someone with deferred compensation arrangements with their employers handle income not yet paid to the worker? 

Some deferred compensation may be divisible

Typically, married couples have to divide what they earn and acquire during the marriage. That could very well include a portion of the deferred compensation that a professional may receive in the future. It may be necessary to review employment contracts thoroughly to establish whether deferred compensation might be subject to division in a divorce. Spouses may need assistance evaluating how much of the deferred compensation is marital property and what it is worth. Particularly in cases where the compensation may involve stock options or performance-based payments, calculating the value of the deferred compensation can be even more difficult than determining what portion of it may be part of the marital estate. Those preparing for high-asset divorces may need help valuing and properly addressing different parts of the marital estate. Getting help early in the process can help people avoid oversights or concessions that put them at a financial disadvantage during and after the divorce.At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online. Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Thu, 24 Oct 2024 19:29:19 -0400<![CDATA[How do royalties and residuals affect your high-asset divorce?]]>https://www.miapoppe.com/blogs/post/how-do-royalties-and-residuals-affect-your-high-asset-divorce
Divorces involving significant assets can be complex. If you are a creative professional or entrepreneur with intellectual properties, patents or royalties, you know how complicated things can get.

What are royalties and residuals?

Royalties and residuals are ongoing payments for intellectual properties such as books, screenplays, music, art, trademarks and patents. Their value can fluctuate over time, making them difficult to assess and divide.

How do courts divide these assets?

In New York, the court tries to divide marital property fairly, but not necessarily equally. Royalties and residuals can make this process tricky. Here is how it generally applies:
  • Marital vs. separate property: If you earned royalties and residuals during the marriage, the court might consider them marital property and divide them. If you earned them before the marriage, they might be yours alone.
  • Future income: The court will consider future royalties and residuals earned during the marriage as shared property. Experts can help determine an accurate valuation of potential future income.
  • Contribution: The court will consider how both spouses contributed to the creative work, including emotional support and caregiving.
Understanding these principles can help you divide your assets fairly in your divorce.

Protecting your interests

Divorce involving substantial wealth demands a careful planning. With the right legal guidance, you can manage the process, protect your interests and emerge stronger on the other side. At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online.Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Wed, 11 Sep 2024 13:51:15 -0400<![CDATA[3 Details To Think About When Dividing Vacation Property]]>https://www.miapoppe.com/blogs/post/3-details-to-think-about-when-dividing-vacation-property
One of the most difficult aspects of a New York divorce is dividing up the marital property – particularly when there are complicated real estate holdings. If you and your spouse have a vacation home, there are a few things you need to understand as you approach the asset-division process of your divorce.

1. A vacation home in New York is treated the same as your residence

Vacation property inside this state must be treated the same as a couple’s residential property. Under New York’s equitable distribution laws, all property acquired during the marriage – with some exceptions for inheritances and separate property carved out through premarital or postnuptial agreements – are generally considered marital assets, regardless of how the deed is titled. Even in situations where vacation property was owned by one spouse before the marriage, the other spouse’s contributions to that property’s mortgage payments, maintenance or remodeling costs may need to be considered. It may be necessary for the spouse who owns the vacation property to compensate the other spouse for their share of the property’s increased value.

2. Rental income from the vacation home may need to be considered in financial calculations

Many couples use their vacation properties as a source of rental income, whether through short-term leases or as an Airbnb. If your vacation home generates income, that will most likely have to be included when income is calculated for issues of spousal support or child support. In many cases, it may be more pragmatic to sell vacation property used as a rental and divide the proceeds. If one spouse does want to keep the property and its income, however, it would then become necessary to buy out the other spouse’s interest.

3. Different rules may apply to vacation homes in other states or countries

If the vacation property is located outside of New York, different rules may come into play, especially when the property is located in states with community property rules or another country. Every country has its own legal framework for dealing with property in divorce, and not all of them recognize foreign divorce decrees. Even in states that follow equitable distribution rules, there may be nuances in the laws that affect how your vacation property is treated. It’s essential to have experienced legal guidance to navigate these issues.At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or bycontacting us online.Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Tue, 25 Jun 2024 22:19:58 -0400<![CDATA[What Is A Statement Of Net Worth And Why Is It Important In A Divorce?]]>https://www.miapoppe.com/blogs/post/what-is-a-statement-of-net-worth-and-why-is-it-important-in-a-divorce
It’s been said that marriage is all about feelings, but divorce is all about practical and financial considerations – and that’s largely true. Whatever the emotions that are going on behind the scenes, the focus of the divorce process is largely on ensuring a fair and equitable resolution of all the couple’s financial entanglements. A Statement of Net Worth is a comprehensive financial document required in New York divorce cases. It provides a detailed overview of each party's financial situation, including income, expenses, assets, and liabilities. Both parties in a divorce are required to complete and exchange this document, which must be sworn to under oath and notarized.

Why the Statement of Net Worth must be complete and accurate

The Statement of Net Worth is a critical document for several reasons:
  • Ensuring the equitable distribution of assets and liabilities: New York uses the equitable distribution system, which means marital assets and debts are divided fairly – and not necessarily equally or 50/50. The Statement of Net Worth provides the court with a clear picture of each party's financial situation, which is essential for making informed decisions about the division of assets and debts.
  • Justifying spousal support (alimony): The document helps determine the need for and amount of any spousal support that might be due. By detailing each spouse’s income and expenses, the court can assess their individual financial capabilities and needs.
  • Child support determinations: When establishing child support, the court considers the financial resources of both parents. The Statement of Net Worth outlines the income and expenses related to the children the couple may share, which aids in a fair determination of each parent’s child support obligations.
  • Providing transparency and full disclosure: The requirement to sign these documents under oath helps encourage both parties to provide accurate and complete financial information (and establishes penalties for deception and lying). This transparency is vital for fair negotiations or judicial decisions.
Finally, the exchange of Statements of Net Worth is a mandatory part of the divorce process. Failing to provide this document can result in delays and negative consequences in the proceedings.It’s easy to make critical mistakes on important forms, like your Statement of Net Worth. Defects in your documents can lead to a lot of frustration for both parties – and unnecessary delays in your divorce. Experienced legal guidance can help you avoid errors that could be time-consuming and costly. At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is seeking a divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online.Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Mon, 10 Jun 2024 20:11:10 -0400<![CDATA[Tips for dealing with cryptocurrency in your NY divorce]]>https://www.miapoppe.com/blogs/post/tips-for-dealing-with-cryptocurrency-in-your-ny-divorce
Cryptocurrencies are increasingly popular in New York, and if you are going through a divorce, it is critical to approach the division of these digital assets with care and precision. If either you or your spouse holds cryptocurrency, it's essential to understand how these assets will be treated under state law.Cryptocurrencies, like Bitcoin or Ethereum, are regarded as property and, hence, must be disclosed and equitably divided between parties, similar to other marital assets. Here are some tips for dealing with cryptocurrencies during your divorce.

Identification and disclosure

As you begin your divorce proceedings, the first step in managing cryptocurrencies is ensuring full disclosure. You and your spouse must be completely transparent about all digital currencies you own. This includes detailing the types and quantities of cryptocurrencies, as well as how and where they are stored. You might need to hire digital forensic experts to trace and verify these assets accurately, ensuring everything is accounted for during the division process.

Accurate valuation

Given the notorious volatility of cryptocurrencies, determining their true value can be quite challenging. To ensure a fair valuation, consider hiring financial professionals who specialize in these digital assets. They can help ascertain an accurate value close to your settlement date, considering market fluctuations to ensure the division is equitable.

Tax considerations

When dividing or liquidating cryptocurrency, be mindful of the potential tax implications, such as capital gains taxes. These implications can significantly impact the financial outcome of your divorce. Consulting with a tax professional who understands cryptocurrency can help you navigate these waters, ensuring you're prepared for any tax liabilities.

Regular updates and monitoring

Cryptocurrency markets are highly dynamic, requiring regular updates on your asset values throughout the divorce process. This will help ensure that the valuation remains fair and reflects any significant changes in the market, which can be crucial for final negotiations.

Document everything

When dealing with cryptocurrencies, meticulous documentation is vital. Ensure you have comprehensive records of all transactions, holdings and access details. This includes purchase dates, amounts, valuations and any transfers or sales. Proper documentation will support your claims and provide clarity during the legal proceedings, helping to streamline the process.

Prioritize security protocols

With the digital nature of cryptocurrencies, ensuring robust security protocols during and after the transfer process is crucial. This includes using strong, unique passwords for any related accounts and employing multi-factor authentication where available. Post-divorce, you should also consider transferring assets to new wallets to further secure your holdings from potential threats.

Consider mediation

To handle disputes over cryptocurrency amicably, consider using mediation services. A mediator can help both parties reach a consensus on how to fairly divide these assets without the need for contentious court battles. This approach can save time, reduce costs and preserve a cooperative spirit throughout the process.Legal guidance can be invaluable in determining the best approach to managing and dividing cryptocurrency in your divorce. At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online.Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Mon, 06 May 2024 14:10:36 -0400<![CDATA[Will I Lose My Business In A Divorce?]]>https://www.miapoppe.com/blogs/post/will-i-lose-my-business-in-a-divorce
Are you considering divorce and wondering whether you’re going to lose your business in the process? While a business may be subject to property division under New York family law, it's important to understand that this doesn't necessarily mean you will lose it. New York is an equitable distribution state, which means that marital property, including businesses acquired during the marriage, is typically divided fairly but not necessarily equally between spouses upon divorce. If you litigate your divorce, the value of your business, and the contributions of both spouses to its acquisition and growth, will be carefully evaluated by the court.

Why would the business be subject to division in divorce?

If you owned a business during your marriage, it is likely to be considered marital property in New York for several reasons:
  • If it was a joint investment, meaning both spouses contributed financially or through labor to establish or grow the business during the marriage, then it is likely to be considered marital property and subject to division in divorce under New York law.
  • If personal and business finances were commingled such as using business income to support the family's lifestyle or vice versa, it can blur the lines between personal and business assets, making it more likely to be considered marital property.
  • If the business was treated as a shared asset during the marriage such as both spouses relying on its income for household expenses or if the business was operated from marital property like a jointly-owned home serving as its headquarters or workspace, it suggests an intention to transmute the business into the marital estate, making it susceptible to division.
There are negotiation options available that may allow you to retain ownership of the business while still achieving a fair and equitable distribution of marital assets.

Buyout agreement

You may consider negotiating a buyout agreement with your spouse, wherein you acquire their share of the business's value in exchange for compensating them through a lump sum payment or structured installment plan. This arrangement allows you to maintain sole ownership and control of the business while providing your spouse with their fair share of the business's worth.

Offsetting with other assets

If there are other marital assets of comparable value, you can negotiate to offset your spouse's share of the business by offering them these assets instead. For example, you might agree to relinquish your interest in certain real estate properties, investments, retirement accounts or valuable personal property in exchange for retaining full ownership of the business. Seeking legal guidance can help you understand your rights and options regarding your business during divorce proceedings. At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online. Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner Disclaimer: The use of the internet or this blog for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
]]>Thu, 11 Apr 2024 04:35:01 -0400<![CDATA[How Are Restricted Stock Units Divided In A Divorce?]]>https://www.miapoppe.com/blogs/post/how-are-restricted-stock-units-divided-in-a-divorce
If you or your spouse benefit from restricted stock units (RSUs), you may be wondering how they may be handled by the courts in the event of a litigated divorce. Like every other asset, the courts will first seek to determine whether the RSUs are separate assets or marital assets. There are several ways the court may determine whether restricted stock units (RSUs) are separate assets or marital assets in the context of a divorce, including the following.

Date of grant vs. date of vesting

The court will consider the date the RSUs were granted and the date they vested. If the RSUs were granted and vested before the marriage, they may be considered separate property. Where they were granted during the marriage but vested after the marriage, the courts may assign part of the RSUs as marital property. Similarly, RSUs granted before the marriage and vested during the marriage may have a portion classified as marital property and another portion classified as separate property.

Purpose of granting the RSUs

Another factor the court may consider is the reason for granting the RSUs. Whether the RSUs were granted as compensation for work performed during the marriage or as part of a long-term incentive plan with benefits extending beyond the marital period can influence their classification as separate or marital property. RSUs granted as performance incentives for work completed during the marriage are more likely to be deemed marital assets subject to division, whereas RSUs granted for future performance or as part of a long-term employment agreement may have a stronger argument for being classified as separate property. The court may examine any agreements or documentation related to the RSUs to determine the intended purpose and treatment of these assets in the event of divorce. Once the classification phase of the process is complete, there are several ways restricted stock units can be divided in a divorce. The following are the most common.

Spouse buyout

This is a straightforward approach where one spouse buys out the other spouse's share of the RSUs. The buying spouse may offer cash, other assets of equivalent value or a larger portion of other marital assets in exchange for the RSUs. This method allows for a clean division of the RSUs without the need for further involvement or ongoing ties between the ex-spouses.

Constructive trust

This is an arrangement where the employee spouse holds the RSUs on behalf of both spouses until certain conditions are met, such as the RSUs vesting or reaching a specified value. In this scenario, the RSUs are not immediately divided or transferred to either spouse but are instead held in a trust-like manner with both spouses retaining an interest. Since tax implications for RSUs can be complicated, it is advisable to seek legal and professional guidance to help ensure that any division or transfer of RSUs in a divorce is conducted in a manner that complies with relevant tax laws and regulations. At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online. Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Wed, 03 Apr 2024 04:34:19 -0400<![CDATA[3 options when business owners get divorced ]]>https://www.miapoppe.com/blogs/post/3-options-when-business-owners-get-divorced
Business owners sometimes get divorced, which can be complicated with a family business. Two spouses may be equal owners. Their marriage is ending, but what does that ultimately mean for their business? It's not easy to figure out.The truth is that there are a number of different options, some of which may work for some couples and not others. It’s very important to consider them all carefully when determining how to proceed.

1. Selling the business

First, the couple always has the option to sell their business outright. This is similar to trying to decide how to divide a family home. Assets like a business are hard to split up in any tangible fashion, but the assets can always be sold. Then, the money that is earned from the sale can be divided between the spouses. It could be that the business they built together is worth far more than it was when they started, and they could have a substantial financial gain when they sell it to a third party. That could provide both spouses with the capital they need to start over.

2. Buying 1/2 of the business

In some cases, only one spouse wants to sell the business -- and the other wants to keep it and keep it operational. In order to do this, that spouse would likely have to buy the other spouse’s half of the company. They could potentially take out business loans and use those funds for the purchase. There are also some situations in which the spouse wanting to sell could accept other marital assets to offset the cost. For example, a spouse might be willing to accept some real estate or investments in exchange for their half of the family business.

3. Continuing to work together

Finally, couples should not assume that they have to change their business relationship at all. They can get divorced and continue being business partners. They don’t have to change their ownership percentages or divide any of the business assets. The big question is just whether or not the couple believes they’ll be able to work together in a professional capacity even though they have gotten divorced. While not always feasible, this sort of thing can and does happen, especially when divorces are amicable. 

Considering your options

As you can see, there are usually a lot of options to keep in mind when ending a marital relationship. It’s important for those involved to carefully consider them as they look into their legal rights and the next steps that they have to take.At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-600-8007 or by contacting us online.Let Me Be Your BraveMia Poppe, Esq.Mia Poppe, Esq.Managing Partner
]]>Wed, 26 Jul 2023 08:27:25 -0400