If there are complex items, such as properties, businesses and significant financial interests, attached to the decision to end your marriage, you are probably in high-asset divorce territory.
There are plenty of opportunities for missteps in divorces that involve high net worth. Here are five common mistakes to avoid:
1. Allowing a guilt trip
Whichever party wanted out of the marriage first will likely guilty about it and end up giving away more that is necessary. For example, a wife may try to allay some of her guilt by waiving the alimony to which she is entitled.
2. Agreeing in haste
Along the same lines, if one of the parties wants to get out of the marriage at all costs, he or she might agree to anything to hurry the divorce along. This could spell financial disaster for the spouse willing to give up everything.
3. Failing to dig deeper
One of the parties in a high-asset divorce is likely better off in terms of finances. The other party should make it a point to investigate the financial picture. There may be hidden assets that need to be exposed.
4. Ignoring tax consequences
Tax consequences are an essential consideration in high-net-worth divorces. Taxes could affect how much you actually receive in alimony, for example. You may also have to pay taxes on any assets you are awarded in the divorce settlement.
5. Listening to others
You may have friends or family members who have gone through a divorce. Perhaps one or two made out very well financially and you wish to do the same. Do not make comparisons. Every divorce is unique, and your attorney will see that yours is handled according to your particular circumstances.
Seeking legal support
Even if it is amicable rather than adversarial, parting from your spouse is likely to be a stressful experience. An experienced divorce lawyer will guide you through the issues involved and help you avoid the pitfalls of a high-asset divorce. You deserve to begin the next phase of your life with confidence and peace of mind.
