High-Asset divorces can be a complicated process. Property division is typically one of the most time consuming and combative stages of divorce followed by custody. When high net worth spouses divide up their assets, it can be difficult to locate all the assets and have them valuated, while keeping everyone amicable. To keep the process moving forward, it’s important for both parties to start from a place of cooperation and flexibility, which can be hard depending on the cause of the breakup.
Higher incomes make divorce challenging because many of the standard calculations for alimony and child support are not useful. Each state has a basic calculation it uses to determine domestic support payments, and while they are usually helpful as a starting point for most couples, in a high-asset divorce they are almost useless. Given how easily a high-asset divorce can be derailed just from a procedural standpoint, it’s important to avoid mistakes that could make the process even longer. The dissolution of a high-asset marriage is already complex, so avoiding additional challenges will serve to keep everything moving forward towards a timely end.
4 Pitfalls to Avoid During Your High Asset Divorce
We want to help keep your divorce on the right path, so we’ve provided 4 pitfalls to avoid during your high-asset divorce. Any of these could derail your divorce and end in additional months of negotiations and litigation.
Consult your attorney before making any financial decisions:
Taking financial steps during your divorce while your assets and debts are being divided can come across as disingenuous or sneaky. You want to fully disclose to your soon to be ex-spouse through their legal team any financial decision you plan to make. For example, if you inherit money or property during the divorce you plan to argue should remain individual property, then you should ensure you are strengthening that claim and not weakening it.
Engaging in mid-divorce reckless spending
Maybe financial conversations aren’t going the way you’d hoped, or you want to get a few more big-ticket items in before the assets are all divvied up. Regardless of the reason, this is will derail your divorce and create trust issues going forward. Unilateral large purchases will not help you in pad your side of the equation. Plus, the level of forensic account that occurs with high incomes and heavy asset divorces means nothing goes unnoticed. Anything you purchase during the marriage or divorce will be divided equally, so it will only serve to delay proceedings and create bad blood.
Don’t try to hide debts or assets
This is a serious error that can lead to adverse legal ramifications. It’s extremely difficult to hide assets from accountants trained to find assets. It’s equally as pointless to hide debt. It will be found, and when it is, you could be penalized. The judge could award the injured party a higher distribution of assets because of the infraction.
Foregoing professional valuations to hurry the process
This is a costly mistake. Wanting to rush through the divorce is understandable, but it’s not worth risking devaluing assets. Without a professional evaluation, your assets’ full valuation could be lost, and one spouse could end up with far more than their equitable share of marital assets. Appraisers should be enlisted for valuations for all assets from jewelry to rental properties. Avoid the temptation to speed along the process by using estimates. It’s not in the best interest of anyone involved.
Legal Counsel to Help You Avoid the Pitfalls of a High-Asset Divorce
Attorney Winner can help you navigate the complexities of a high-asset divorce. An experienced attorney can help you understand how to avoid mistakes during your high-asset divorce. Attorney Winner has been recognized for his handling of high-asset divorce, specifically in the areas of business valuation and hidden assets. If you have questions about your high-asset divorce filing in Kentucky, call the Law Offices of Louis Winner at (502) 812-1889 to schedule a consultation.