Managing a high-net worth divorce can be quite a bit more difficult than middle class divorce. There is much more at stake in the outcome: some people can be subject to significant financial setbacks if asset distribution isn’t handled by an attorney with high-asset divorce experience.
If you have a high net worth or assets such as a high-earning business, these are three common mistakes to avoid making during a divorce:
- Hiding assets from your spouse: not only is this unlawful, but it can negatively impact your credibility during your divorce. While it might seem like there are ways to get away with this, such as transferring money or ownership to another person or opening a secret account, it’s unlikely that it will go unnoticed. Being discovered can drastically alter your settlement, and may result in court-ordered consequences. Conversely, it’s also important to look for assets your spouse might have hidden during your divorce.
- Trying to speed things along: high-asset divorces take more time than the average divorce. Some people lack the patience for the meticulous process, and may try to rush through important proceedings related to the settlement. By making hasty agreements, you risk losing a significant amount of assets, whether it’s because you agree to an amount that shortchanges you, or forces you to pay more than is fair. You might also overlook details that can affect your taxes down the road, and at that point you’d be stuck with whatever hand you were dealt.
- Letting emotions get in the way of decision-making: Divorce can be one of the most difficult times in a person’s life. However contentious things may be between you and your spouse, make sure you don’t let it cast a bad light on you or disrupt your ability to make rational, level-headed decisions. You may regret impulsive acts driven by guilt or anger later on.
A little bit of patience, understanding and self-control goes a long way in a high-asset divorce. Much like building a nest egg, taking the time to slow down and be thorough will pay off in the end.