Acquiring a divorce is often a complicated and emotional legal issue. The divorce process can become even more difficult to navigate when the couple divorcing has a high net worth. A high asset divorce not only causes a lot of friction between parties, it can also create a stressful tax situation. If someone seeking a divorce is not properly informed, they can end up making some costly mistakes.
The family court defines a high asset divorce case as a case where the married couple has accumulated a large amount of wealth and property. The following resources can also be included as assets:
- Real Estate
- Work Bonuses
- Security Portfolios
- Business Holdings
- Life Insurance Policies
As you can see, when getting a high asset divorce, it's crucial you have a divorce lawyer you can trust to help you achieve your divorce goals.
As one can imagine, when it comes to divorces, ones involving a vast amount of wealth can be stressful due to the fact that both parties will want to leave the marriage with the bigger portion of the wealth. Sometimes the parties will use financial specialists, psychotherapist, and tax accountants to help them handle their divorce case. However, even with all of this assistance, one can easily make a common mistake.
Fortunately, if one hires the right divorce lawyer and stays informed on all important information, they can avoid making a huge mistake. The following tips will help you avoid making these common mistake people make when getting a high asset divorce.
Being Too Eager To Settle
It's not uncommon for spouses going through a divorce to want to resolve matters quickly so that their new lives can begin. However, being too eager to reach a divorce settlement can lead to years of regret.
For high asset couples, rushing a divorce settlement could lead to unfavorable terms like unfair alimony payments, unsatisfactory child support, and an unfair distribution of material assets.
Don't agree to terms you aren't happy with just to finalize everything quickly. Take the time to research all of your material assets. It's also important that you make time to discuss your options with your divorce lawyer. After all, she'll be helping you negotiate to get the money you need to have a fresh start. Don't let mere convenience of a quick divorce jeopardize your financial freedom.
Forgetting To Keep Tax Consequences In Mind
When deciding how your marital assets will be divided, it's important that you consult with an experienced divorce lawyer or tax professional. Doing this will help you understand how your divorce will affect your tax bills. Such things as an early withdrawal from retirement funds or the sale of you and your partner's old home can lead to a huge tax bill if you aren't careful.
In addition, your tax filing status will also change. Tax deductions that you previously received may not longer be available. It is well worth your time to do proper tax research before you finalize your divorce.
As tempting as it might be to set aside a portion of money in a private account during your divorce, it is in your best interest if you do not. During the divorce process, all courts require full disclosure of financial assets. If you get caught trying to hide money by transferring it to a business partner, friend, or family member, you could face serious consequences. Don't risk damaging your credibility in court.
After all, it's possible that your judge will punish you for your dishonest conduct by granting your partner a larger share of marital property.
High asset divorces do not need to be stressful or overwhelming. Couples who are able to work together can end up saving thousands of dollars in court costs and attorney fees. By actively taking part in your divorce settlement, you and your partner are laying down the best financial foundation for you and your children.
Cooperating with your divorce lawyer and your partner can make innovative and unique solutions available to you that would otherwise be nonexistent in court. Working together can also help finalize your divorce faster. In short, you must be willing to cooperate to ensure your high asset divorce ends with you getting financial support you need.
Failing To Get The Right Divorce Lawyer
If you want to avoid these common mistakes made during high asset divorces, you need to have the right divorce lawyer working for you. Make sure you select a lawyer who has experience handling complicated high asset divorce cases. If you are a resident of Monterey County, consider getting assistance from the law office of Barbara J May. This established Monterey Family Law Firm has been successfully providing experience and representation to clients throughout the Monterey Bay area for years.
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