April 5, 2022
When two people with a high net worth get a divorce, the procedure becomes exponentially more difficult owing to the magnitude of the assets that must be found, valued, and split. Furthermore, high net worth couples may face additional challenges when determining custody, child support, and alimony matters because higher income levels mean that the basic calculations that the state produces are no longer the presumptive amounts, and there are many ways support can be calculated that result in many different amounts.
Given the numerous moving parts involved in the dissolution of these marriages, it is critical to be aware of the frequent mistakes to avoid during a high net worth divorce that might adversely influence the outcome of your case.
Avoid the Mistake of Hiding Assets or Debts in a High Net Worth Divorce
Another serious mistake to avoid during a high-net-worth divorce is attempting to hide any assets or property from the other spouse. In most high-asset divorces, each spouse’s counsel may consult with a jointly or individually engaged forensic accountant to ensure that all assets are appropriately found and valued. As a result, attempting to conceal any holdings by failing to disclose them in the belief that they would be overlooked may not only be useless, but may also expose an offending individual to legal penalties in some situations, as well as a court awarding the non-offending spouse a greater distribution.
Accepting a Settlement Offer to Speed up the Process
Divorce is never an enjoyable experience. Emotions and stress levels can (and typically do) soar. Sometimes you just want to agree to whatever your spouse proposes for a property settlement so you can cut connections and move on with your life. This, however, may not be in your best interests.
You may have agreed to take too little or too much spousal and child support, and you may be receiving less than your fair share of assets. Furthermore, the future tax effects of your actions may not be noticeable right away, but unfavorable consequences may follow you for years.
Your divorce attorney will play a key role in helping ensure assets and liabilities are divided in a way that is in your best interest.
Avoid Lavish Expenditures During Your Divorce
In a high-net-worth divorce, both parties have a lot riding on the case’s outcomes. As a result, some high-net-worth spouses wrongly feel that by spending lavishly before filing for divorce, they may raise the alimony they may be entitled to, keep the expensive objects as part of their settlement, or simply try to keep that amount of money out of the final division. However, it is essential to note that this strategy is risky.
If you are caught spending lavishly before it is time, your spouse’s attorney has the right to ask for punitive damages for any unreasonable expenditures. Furthermore, your attorney may require you to disclose any pre-divorce expenditures, and the judge may end up attributing the money to your spouse.
Assuming Your Divorce Needs to Be Difficult
Anger and years of frustration may lead to nasty conflicts in many high-net-worth divorces. However, don’t expect your divorce to be a protracted struggle with your soon-to-be ex-spouse. If you and your attorney can reach an agreement in your best interests, you may be able to avoid the time and money that might come with unnecessary litigation.
Not Using a Skilled Divorce Lawyer
Don’t make the mistake of assuming that all divorce lawyers are the same. Although your coworker or brother may have had a positive experience with their attorney years ago, it is critical to select an attorney with whom you are comfortable working and who has the abilities and resources to assist you properly.
Conclusion
The stakes are high in any high net worth divorce, and it is essential to consult a skilled attorney to help ensure you do not fall victim to common high net worth divorce mistakes.
If you’re looking for the top Jacksonville attorneys specializing in family law, reach out to the Dorsey Law firm. With over 35 years of experience, we can provide you with help with your prenup and more. Contact us today at (904) 394-2865 for a consultation.
