In a high net worth divorce, the list of assets is so large that divorcing couples find they agree on dividing some things, but not on others, and neither wants to budge. Stress is high when large amounts of money, property, businesses, assets and other items are at stake. The divorcing party can be very emotional and often feels betrayed, angry, aggrieved, disappointed and might let these emotions influence their decisions.
These factors create a recipe for mistakes on both sides of the divorce, which have long-term effects on both spouses and/or their children. Here are a few things to avoid during a high net worth divorce:
• Guilt: When a spouse wants a divorce, they are bound to feel guilt for the other, despite justification. The spouse feeling guilt tends to give more money than hey should. When it comes to financial assets, decisions should be made similar to dissolution of a business rather than with emotions.
• Agreeing to anything to be out of the divorce: A spouse filing due to domestic/physical violence, or being in love with someone else is willing to do anything to be away from their current spouse. It is important to have a thorough analysis because this can lead to damaging effects on you financially.
• Failing to account for, or hiding assets: It is common to want to hide or transfer assets in a high net worth divorce. Transferring valuable assets to another person, such as, a business partner, will be seen as fraudulent and you will lose credibility in court. It is important to take the research process seriously for the law mandates the financial documents you find.
• Listening to non-professionals: During difficult life changing experiences, we often seek council from the people closest to us. While that might be good for your emotions, it may not be the best legal and financial advise you can get. Everyone’s experience is different and in a high net worth divorce, protecting your financial assets is key. Seeking professional guidance in the specific areas or getting a team together is a step in the right direction. Keep in mind that laws change and every judge is different.
These are only a few mistakes made in high net worth divorces, most all of which can be prevented when you hire a good divorce attorney.
Contact Thorsteinson Law Group to help you protect your net worth in a divorce. We provide complimentary consultations, and are dedicated to helping you through the divorce process.