Deciding that you want to part ways with your partner is not enough – you will have to through a process to dissolve the marriage. When you decide to end your marriage in divorce, you have to think of many other issues that often make it difficult to separate your lives from each other. The most important issue is to determine how you two will divide property, and it becomes even complicated when you have a large number of assets. If you are going to have a high net worth divorce, you should avoid making the following common mistakes.
The biggest mistake is to not work with a financial advisor. Many people do not realize that a high net worth divorce involves so many complex financial issues, such as business valuation, real estate valuations, retirement accounts, investments, and more. In this situation, you will be better off working with a high net worth divorce attorney who can help you know what both spouses earn, own, and owe. Working with an experienced attorney can help resolve financial issues and prevent unexpected complications throughout the divorce process.
Trying to hide the assets is another common yet dangerous mistake many couples make in a high net worth divorce. Some try to save their assets by transferring them to a relative or child, while others may simply avoid disclosing their total earnings. You have to understand that hiding assets in the court is illegal and can lead to serious consequences. Moreover, taking such a step would make you lose your credibility – it means you will be at a disadvantage in case something goes wrong or a dispute arises during the process. Whenever dealing with anything of legal nature, you should always provide complete and accurate financial information, or else you will land in serious trouble later.
Not paying attention to taxes after being divorce is yet another big mistake to make. You will have to determine your filing status and confirm any exemptions you may have. You should consider issues such as taxes on spousal support, capital gains, and any benefits you are getting that may be termed as taxable income. Again, working with a financial advisor can save you from all the hassle because they have the experience and can help you understand the impact of your divorce on your taxes.
Underestimating the importance of having a postnuptial or prenuptial agreement is another common mistake made by the couples involved in a high net worth divorce. The agreements often help make it easier to decide how issues, such as financial assets, business ownership, and inheritances will be taken care of during divorce. Having one such agreement, in the beginning, can often make the divorce process a little less costly and complicated.
Other than these, you can make many other mistakes throughout the process of getting divorced, and those mistakes can prove quite costly considering the enormity of the assets involved. Therefore, it always a good idea to have an experienced, knowledgeable high net worth divorce attorney by your side to sail through the process in a hassle-free way.