When it comes to handling your divorce, you don’t want any mistakes to slip through the cracks. If you’re dealing with a high asset divorce, this is especially important because you have more assets to lose. With more assets comes more potential slip-ups and more bases to cover, which is why individuals with a high net-worth need to be especially cautious when it comes to divorce.
If you’re going through a high net-worth divorce, make sure you know what to do. Avoid these five common mistakes as you go through the divorce process.
1. Rushing the Process Along
Good things come to those who wait, remember this as you trudge through the divorce process. Because you have more assets, your divorce is much more likely to take a bit of time. The fact is, you have more properties, investments, accounts, and assets to sort through, and in order to do so thoroughly, your lawyer, accountants, and the court will need time to get things done properly. You may want to process to move on quickly, but sometimes a bit of patience is required if you want everything handled correctly.
2. Hiding Assets
At the beginning of a divorce, each spouse is required to disclose all financial information, including income, debts, expenses, and all assets. It may be tempting to fib about certain accounts or to hide properties that you believe should be yours, but lying about your assets is never a good option. Not only is it dishonest, it could seriously hurt your case when the judge finds out. Hiding assets or falsifying documents in court could give the judge reason to award more assets to your spouse for your behavior, or you could face more severe legal repercussions.
3. Failing to Look for Hidden Assets
Just because you were honest on your financial statements, that doesn’t mean you should assume your spouse was too. Always err on the side of caution and have your forensic accountant or private investigator look over your spouse’s finances to make sure they aren’t trying to hide assets from you.
4. Ignoring Tax Consequences
Many individuals have realized, perhaps a little too late, how seriously the financial decisions you make during your divorce could affect your taxes. First of all, your filing status will change once you are no longer legally married, which means you might not enjoy certain deductions you once did. Also, some of the assets you acquired during your division, perhaps from the sale of your properties or the liquidation of an account, could result in some hefty tax consequences.
To avoid being blindsided by hefty tax consequences at the end of this, make sure you consider what each move will cost you now, while you’re still able to make changes.
5. Letting Your Emotions Control the Situation
Going through a divorce can be difficult for several reasons, whether you’re angry, sad, overwhelmed, stressed, or a little bit of everything. It is understandable to feel each and every one of these feelings, but it’s also important to know when to share them and when to keep them contained. When it comes to divorce proceedings, whether in court, with a mediator, or alone with your spouse, make sure you do what you can to keep your emotions in check. Try to be practical when it comes to your divorce and don’t let your emotions take control of the situation. When you make emotional decisions regarding child custody, property division, or anything else, you’re likely to cause more contention and you might regret your choices later on.
The divorce process is difficult for everyone, but when you are dealing with a high-asset divorce, there are a few additional challenges you might be facing. Our firm has the experience and legal knowledge necessary to help you through your divorce quickly and proficiently, and we know what to do to help individuals with a high net-worth.
Contact Singleton Smith Law Offices, Inc. to discuss your case with our Murrieta divorce attorneys.