When it comes to a high asset divorce, both spouses usually find themselves ticking off things on their to do lists. They want to be certain they have crossed every T and dotted every I, which is of course a wise approach. High net worth divorces have unique complications involving a wide array of financial factors, making the extra attention crucial.
However, sometimes in the rush to “do,” people may overlook the things they should “not” do. Here are a few mistakes to look out for when going through your own high asset divorce.
1. Forgetting to prepare financially: Those who routinely deal with high value assets often assume they are prepared for every financial burden that comes their way. Expenses can arise unexpectedly, so it is important to make sure you have some easily accessible funds set aside to use for the divorce. Also, avoid making the mistake of not factoring in new costs due to changes in living arrangements and other issues.
2. Forgetting about some assets: Take some time to go through all of the documents concerning assets accumulated during your marriage. Include even the smallest resources as they can be used as bargaining chips when settling property with your spouse.
3. Overlooking tax consequences: Expect big changes once your divorce is final and your taxes are no exception. Try to look ahead during negotiations with your spouse and consider the long-term effects holding on to some assets could create. Things to think about include alimony, retirement accounts and any possible tax audits for previous years.
These three possible mistakes should get you thinking in the right direction going forward, and remember, your divorce attorney is a bountiful resource when it comes to preparing yourself financially.
Source: Wife.org, “The Twelve Financial Pitfalls of Divorce,” Ginita Wall, accessed May. 28, 2015