Going through divorce is tough enough as it is, but matters can be even more stressful and overwhelming when you’re in the midst of a high-asset divorce. Here, you have to make very important financial decisions that could affect your stability for years to come. With so much on the line, you owe it to yourself to put forth the strongest arguments possible in the hopes of achieving a favorable outcome.
Mistakes to avoid when dealing with a high-asset divorce
Unfortunately, a lot of people who go through a high-asset divorce end up making costly mistakes. These errors are made for a wide variety of reasons, but sometimes, people just want to finalize their marriage dissolution as quickly as possible so that they can break free of their spouse and move on with life.
With that in mind, let’s look at some of the most common mistakes that you need to be prepared to avoid as you navigate your high-asset divorce:
- Misidentifying property: If you want your fair share of the marital estate, you have to be sure to properly classify the assets that are in play. The same holds true for separate, individually owned property. So, make sure you’re paying close attention to how inheritances and large gifts have been handled to determine how much of an interest you have in them.
- Inadequate valuations: Assets of high worth should be valued so that you know what they’re worth before addressing them in divorce negotiations or through litigation. Assets that should be subjected to valuation include businesses, jewelry, artwork, and anything else that you think is of significant worth.
- Foregoing forensic accounting: There’s a lot to keep track of in a high-asset divorce. You and your spouse probably have numerous accounts, lots of physical assets, and maybe even a business. This can give your spouse opportunity to try to hide assets or inflate debts in an attempt to limit the amount of assets that have to be divided with you. Often, the only way to catch these issues is to conduct forensic accounting where you have an expert follow paper and money trails in order to figure out where marital assets have gone.
- Not aggressively litigating spousal support: The outcome of a spousal support dispute can be extraordinarily expensive, regardless of which end of the issue you’re on. Although an offer of spousal support may be made during negotiations, if you’re the receiving spouse, you’ll want to make sure that the offered amount is adequate and fair under the circumstances. This means that you should assess everything from incomes to earning potential and the marital standard of living before signing off on a settlement offer that addresses spousal support.
Be prepared to fight for the outcome you deserve in your high-asset divorce
As you can see, there’s a lot to take into consideration as you navigate your high-asset divorce. Overlooking or inadequately addressing just one area can leave you at a distinct disadvantage, and it may lead to an outcome that you hoped to avoid.
That’s why you should consider working through your case with an experienced legal professional by your side. With one of these advocates in your corner, you may be able to better position yourself for success, which could make all the difference in your life for years to come.