According to Forbes, if California were a country, it would rank third in the number of billionaires behind the U.S. and China. Several of these individuals are in relationships or married.
What happens if they divorce? Many high net-worth divorces become disputed because of the money and assets involved in the marriage. What are some mistakes you can avoid when going through a high dollar divorce?
1. Hiding assets
Concealing assets is illegal. By knowing the financial status on all your accounts, you can protect yourself if your spouse tries to hide something. Penalties may involve payment of your fees and legal costs.
Criminals charges may include perjury and fraud. Perjury penalties could consist of prison time for up to four years.
2. Spending money
Some spouses may believe that spending substantial amounts of money before a divorce will get them a higher alimony payment. Do not make this mistake. California is a community property state, which means each spouse receives 50% of all assets.
When making extravagant purchases, everything bought gets divided during the divorce. Sometimes, if the court decides a spouse may have dissipated assets, the judge could award the innocent spouse over 50% of the remaining assets.
3. Neglecting appraisals
Not having appraisals done on your property and other assets may mean you will not get as much money as you deserve. An appraiser is critical to assess the property’s current worth to ensure a true 50-50 split. Have items appraised such as rental properties, businesses, pensions, jewelry and collectibles.
If you have several high-dollar assets or businesses, hiring outside consultants may help. Depending on the issues involved, experts may give you benefit from their advice.