If you are facing a complex, high-net-worth divorce, you may feel overwhelmed by questions, such as how this will affect your children, how all the court will divide the assets, what you can expect in terms of alimony and much more.
While you are contemplating these things, the emotional side of the divorce will certainly find its way in, making poor decisions easy to make. Here are four common mistakes to avoid in your high-asset divorce.
Being too agreeable
You may want to get out of your marriage in the worst way. Your spouse may be cheating on you. You may have fallen for someone else. The two of you may have grown apart and simply cannot stand being together anymore. There are many reasons for wanting out of a marriage, but the danger is that you will agree to anything in order to gain your freedom. This attitude can create big financial problems down the road, so take your time. Always consider your future.
Failing to delve deeper
In high-net-worth divorces, there is always a possibility of hidden assets. Your spouse may have a more sophisticated understanding of financial dealings than you do. An experienced divorce attorney will often obtain the services of other professionals, such as an appraiser or forensic accountant, to help ferret out accounts, properties and other items of value you might know nothing about but that should be under consideration as marital property.
Ignoring tax consequences
In the property distribution phase of your divorce, you may receive taxable assets, and the amounts could be substantial. There could also be tax implications associated with the alimony amount in the agreement. Be alert to these possibilities when the settlement is under negotiation.
Letting guilt take over
A family law attorney will tell you that where there is divorce, there is guilt, no matter what the circumstances are that caused the breakup. Do not let guilt nudge you into giving up more in the divorce than you should. Again, consider your future. The next chapter in your life should be as comfortable and secure as you and your attorney can make it.