Among divorces, there are simple cases that typically involve one of the following: a short marriage, no kids, or few shared property. In general, these are straightforward, and you can get through the process with ease.
When dealing with multiple properties and complex financial portfolios, things become complicated. With so much at stake, a divorce between high net worth individuals comes with unique challenges. With your financial future on the line, you’ll want to minimize the chances of making a mistake.
1. Agreeing to an Unfavorable Settlement
Divorces are an emotional, heated roller coaster that can take up a lot of your time. Because of this, many people rush to settle so that they can get the process over with. The opposing side may know this and take advantage of your state.
Don’t give up on assets that are rightfully yours and agree to unfavorable terms. If you have an attorney advocating for you, they will fight for a favorable outcome.
2. Letting Emotions Take Over
No matter how your marriage ended, there’s bound to be hurt feelings. As much as you may want to lash out and punish your spouse, it’s not the smartest divorce strategy.
A conflict-heavy approach can cost a lot of time and money while taking a toll on your mental state. This is true for all divorces, but especially in high asset divorces when there’s more to fight over. Fighting about every last detail takes time, but you should focus on the bigger picture and set aside your feelings.
3. Attempting to Hide Assets
During the divorce process, you and your spouse will have to disclose all your assets, but some people try to hide money or property to keep it away from their ex. Both lawyers and judges are familiar with these tactics, and they will most likely discover your deception, which can lead to legal consequences. It’s best to fight fair.
4. Neglecting Tax Implications
As you end your marriage and move on to the next chapter of your life, there’s so much to consider, from your living situation to changing your emergency contact, and it’s easy for things to fall through the cracks. One of those things is your taxes. You will have to update your filing status and they will likely change considerably, especially if you receive property in the settlement. There’s also spousal support to consider. It’s important to educate yourself or seek help from a financial advisor.
5. Hiring the Wrong Legal Team
One of the biggest mistakes one can make is working with the wrong lawyer. In these complex cases, it’s in your best interest to hire an attorney that’s well-versed in high asset divorces and has the experience to handle one.
Do your research and find a lawyer that can fulfill your unique needs. Many firms will offer a consultation, which is the perfect opportunity to determine if they are the right fit. Remember, you will be working together for a long time, so choose wisely.
At Knies, Helland & McPherson, we are committed to partnering with our clients for a successful future. We understand that each case is unique and requires collaboration and a personalized strategic approach to find the right solution. We are ready to provide our knowledge, experience, and compassion to alleviate the burden of taking on the stress of a divorce alone.