Mediation is a popular way for New Jersey couples to settle their divorces. This method involves negotiating with your spouse to reach an agreement on key decisions, such as property division, spousal support, and child custody, while under the guidance of a mediator. Mediation can be a good idea for any couple, but there are certain advantages for those with high-value assets. Below are some of the top reasons mediation is better for high-asset divorce in New Jersey.
Reason One: More Control During Complex Property Division
High-asset divorces involve much more than simply dividing checking accounts and a family home. Many high-asset divorces involve:
- Multiple residences, vacation homes, or rental properties
- Business assets
- Investment portfolios
- Retirement accounts
- High-value personal property, such as vehicles, jewelry, or art
The average home cost in New Jersey is $578,885, and it’s even higher in areas like Avalon, Deal, or Spring Lake. This means many couples’ marital estates involve high-value assets, especially if they own multiple properties.
With such a high dollar amount involved in your divorce, a thoughtful division strategy is essential. In a mediation case, you are able to maintain control over how your assets are divided, instead of leaving those decisions to a judge. Through the collaborative mediation process, you can create unique, customized agreements that account for each of your assets while protecting your financial goals.
Reason Two: Greater Privacy
Litigation is not as private as some people may believe. In a high-asset divorce, it brings your personal financial information, business records, personal assets, and other sensitive information into public court records.
Mediation, on the other hand, is private. You and your spouse can negotiate knowing that the evidence and documentation involved remain out of the public eye. Under high-asset divorce laws, your mediator is also required to keep your information confidential.
Reason Three: Lower Costs
Litigating a high-asset divorce can be extremely expensive. These cases often involve long discovery periods, multiple hearings, or expensive asset valuation or forensic accounting services. With a divorce rate of 2.2 per 1,000 people, many couples in New Jersey are worried not only about dividing their assets, but also about decreasing the value of their estate through a divorce.
In a divorce mediation case, there are reduced court costs and attorney fees, as the process is more streamlined and is often resolved more quickly than in court. Mediation allows you to reduce the financial burden of a divorce on your assets.
Reason Four: Protecting Wealth Long-Term
Divorce is hugely impactful on your long-term wealth, particularly when dividing important assets such as investments, real estate, and retirement accounts. Fifty-six percent of married Americans report that getting a divorce would derail their retirement plans. These long-term damages can be exacerbated in litigation, where a judge may use standard formulas that don’t protect both spouses’ wealth.
A New Jersey divorce mediation attorney can help you preserve important investments, as well as identify ways to limit unwanted tax penalties, such as using a qualified domestic relations order.
Reason Five: Customized Agreements for Snowbird Couples
Many high-asset couples in New Jersey also spend a significant amount of time down South in Florida. If this describes you, you likely own real estate and may even have multiple sources of income across multiple states. During a divorce, many couples are left wondering where they are going to end up or if they are going to continue splitting their time between states.
Mediation allows you to make important decisions regarding your property as a Snow Bird, without sacrificing your personal goals. If you hire a divorce mediation lawyer, they can suggest solutions for real estate division or for allocating maintenance expenses. They can also explain the unique tax considerations and high-asset divorce laws that apply when a mediation case involves multiple states.
FAQs
What Is the Golden Rule of Mediation?
During mediation, the golden rule is to treat your spouse as you would like to be treated. This means being willing to communicate honestly, listening to the other person’s opinions, remaining open to compromise, and focusing on solutions rather than dwelling on personal issues. While both parties must be willing to resolve a dispute for mediation to be successful, a skilled New Jersey divorce mediation attorney can help facilitate productive mediation sessions.
What Assets Are Untouchable During a Divorce?
In general, separate property is not subject to division during a divorce. Separate property mainly includes assets acquired before the marriage, inheritances, and personal gifts. During mediation, you must be transparent about all assets, including separate property. Then, you and your spouse, with the guidance of the mediator, can classify property as separate or marital property.
What Not to Say During Mediation?
During mediation sessions, you should avoid making personal attacks on the other person, bringing up past issues, making ultimatums, or refusing to compromise. During mediation, remain respectful and honest, as it allows you to work towards a solution that allows you to move on from a divorce, rather than feeling stuck in past issues.
What Questions Do They Ask You in Mediation?
A: You can be asked many different questions during mediation. Often, a mediator asks about your personal priorities, financial situation, parenting goals, property and debts, and what you want to get out of mediation sessions. In many high-asset divorce cases, there are follow-up questions about topics such as business ownership, investments, real estate, or tax considerations, which may help the mediator suggest favorable solutions.
Hire a Divorce Mediation Lawyer From Shore 2 Shore Mediation, LLC
Shore 2 Shore Mediation is led by managing attorney Brad M. Micklin. He is a Superior Court-approved mediator under New Jersey Court Rule 1:40, giving him the authority to act as an impartial mediator in a high-asset divorce mediation case. At Shore 2 Shore Mediation, we help couples avoid the high costs, wasted time, and stressful hearings that litigation brings by guiding spouses to agreements through collaboration and communication.
If you have a large marital estate, making smart decisions during your divorce has a huge impact on your wealth. If you want a divorce process that supports customized, flexible solutions that protect your interests, contact Shore 2 Shore Mediation.
