Divorces are often complex and emotionally draining. There are a wide variety of factors which both parties must take into consideration, such as dividing assets, deciding on child custody, determining alimony, etc.
This is especially true for those involved in high asset divorces, where a substantial amount of money, property, assets, businesses a, and other valuable items are at stake. High net worth divorces have much higher potential for mistakes for both parties involved, which could result in an unfavorable agreement.
The following are six mistakes to avoid in high asset divorces:
- Hiding assets. Being deceitful to avoid having assets taken away from you in your divorce will always have a negative impact on divorce since it is often traceable. Hiding your assets will damage your credibility with the judge and even make you subject to criminal charges.
- Conducting inaccurate accounting. Take your time when it comes to filling in the information required in your financial affidavit and providing the proper financial documents. These documents are used to determine which assets and liabilities you will receive. They can also be used to figure out child support and alimony payments.
- Failing to investigate. While you are being honest throughout the entire divorce process, your spouse may not be. Do not risk being taken advantage of and investigate your spouse’s financial disclosures to ensure they are accurate.
- Failing to consider the long term effects. Examine all assets carefully before trying to obtain them in your divorce. While some assets are worth a significant amount, such as real estate properties, they are also associated with expenses, taxes, and even debt.
- Agreeing on a settlement too quickly. You may be eager to start a fresh, new chapter in your life, but that doesn’t mean that you should sign something you don’t fully comprehend. You need to understand every document you put your signature on or else it could hurt you in the end.
- Failing to hire a lawyer. Having an experienced high asset divorce lawyer on your side can help prevent you from making any of these mistakes. An attorney can help you navigate through the complexities of the divorce process and legal system in order to protect your best interests and rights.