Avoid These Common Mistakes in a High-Asset Divorce
While there is no easy divorce, the stakes are much higher when significant assets are involved. It is no longer business as usual, and even the slightest mistake can result in substantial losses.
Therefore, you need to be wary of the pitfalls to avoid and ensure you do not lose out in a high-stakes divorce.
1. Hiding or dissipating marital assets
When millions of dollars in assets and cash are involved, you may think that some of your actions will go unnoticed. For instance, you may be tempted to hide assets from the divorce court to avoid sharing them with your ex-spouse or make questionable and unnecessary transactions in the lead-up to the divorce.
However, hiding assets during divorce is against the law. You could open yourself to legal penalties for that. Additionally, you may have to repay misappropriated marital funds.
2. Being oblivious to tax implications
You may have been awarded the family home, but do you have the means to keep up with the taxes on the property? Many people are unaware of the tax obligations they may have to shoulder after property division or the tax consequences of asset transfers, especially investments, after divorce. You may end up saddled with a significant tax burden if you are not careful.
3. Being emotionally charged
Divorce proceedings can get emotional, but it is advisable to be clear-headed. Avoid acting on impulse or lashing out at your ex. It could affect other aspects of the divorce, such as the custody of the children. Some decisions may not go your way if you are perceived to be violent or not in control of your emotions.
4. Not weighing your options
Have you considered an uncontested divorce in place of litigation? Do not rush to contest your divorce before weighing the pros and cons of your decision. It is easier to settle a divorce outside court. Doing so can also preserve more of your assets to be divided.
It is beneficial to reach out for help if you have any doubts or concerns about the divorce process. The proper legal guidance will help secure your interests and ensure you get what you deserve in your divorce.
5. Being impulsive
Don’t make a rash decision that you’re going to regret later. Think things through. Research, careful consideration, and level heads will find the most satisfactory conclusion in legal struggles. Impulsivity and spontaneity will often result in regret.
6. Handling things alone
You may think you know yourself or your soon-to-be ex-spouse and that you two can work things out without the need for legal representation.
Don’t make this mistake.
Hire a divorce lawyer experienced with handling high-asset divorces like yours.
It might cost money and it might be uncomfortable, but it’s worth it.
7. Panicking if there’s not a prenup
If you and your spouse married while one or both of you were already wealthy, a prenuptial agreement may already be in place. However, if the wealth was acquired more recently, perhaps a prenup was never signed before the marriage. In which case, now that you are considering divorce, it’s possible that some of your assets are more vulnerable than they would’ve been had a prenup been in place.
Just the same, don’t panic.
Many wealthy parties survive divorce without a prenup by entering into mediation and proceeding with a no-contest divorce.
8. Forgetting to try mediation
Mediation is a legal process in which a third party, usually an experienced family law attorney such as those found at Family Lawyers of Atlanta, serves as a mediator. This lawyer will work with both divorcing parties and serve to help them each reach the satisfying conclusion of their divorce. The mediator’s role may include negotiating the division of assets, child support arrangements, visitation agreements, alimony, and spousal support.
Mediation keeps things private and more civil than working with opposing counsels each fighting over their pieces of the pie. This can also save money for each ex-spouse in the end.
9. Feeling entitled or above everyone else (least of all the judge)
It’s normal to feel angry, sad, and under attack while in divorce proceedings. But try not to feel entitled. Divorce is expensive, everyone loses something they’d rather hold onto, and some parts of a divorce are going to get uncomfortable as lawyers and judges pull back the curtain to peer into your private lives.
Do not feel above the process. Do not feel that you are entitled to certain amounts in the settlement agreement.
By all means, stand up for what you’re worth. But don’t make the mistake of demanding what you think you deserve. Divorce – and the law – doesn’t often work that way.
10. Forgoing professional advice and valuation experts
If you acquired assets over your marriage like works of art, antiques, jewelry, rare cars, real estate property, and other expensive collectibles, those assets may be divided at the time of your divorce.
Don’t assume to know their value. Seek the advice of experts and professionals to evaluate and determine the worth of your valuables. Then, when your assets are divided, you will know what each item is worth.
Schedule a Free Consultation with High-Asset Divorce Lawyers Today
If you are considering a divorce and you have a high net worth, then you absolutely need to hire experienced divorce attorneys to represent your interests in a court of law. Not only do some ex-spouses look to capitalize on getting big payouts in divorce settlements, but even if the ex is on the level, sometimes their lawyer might not be. Do not get taken advantage of.
At Family Lawyers of Atlanta, our divorce lawyers and legal staff have years of experience dedicated to helping clients through difficult divorces like yours. Whether your divorce is contested or uncontested, your assets and property need to be taken care of, and our legal team is more than prepared to have your back.
Our law firm offers free case evaluations to all prospective clients. If you do not feel we are the right fit for you and your case, you are under no obligation to retain our legal services.
To contact our Atlanta-based law offices, please call us at 404-418-7777.