Divorce is an inherently challenging process, both emotionally as well as financially. Add to it the complications of dividing a vast estate and separating marital from premarital belongings.
The road to a high net worth divorce is a veritable minefield, and the stakes are very high sometimes. You could have much more to gain or lose than just your soon-to-be-ex. More assets, more income, and hence, more bones of contention to deal with.
Even if you have an iron-clad pre-nuptial agreement, you will need all the skills and commitment of a seasoned divorce lawyer who understands the world of complex financial transactions and can preserve your interests.
Seek counsel from a dedicated divorce attorney if you are wealthy and own substantial assets. Meanwhile, here are some common mistakes to avoid if you and your spouse are going through a divorce:
1. Do Not Be Too Static or Too Bitter
If you are contemplating divorce or reckon your partner is, your priority should be to seek professional legal help at the earliest. Contact a lawyer and strategize proactively to preempt any surprises. You do not want to be the one at the receiving end of a legal notification from your partner’s attorney.
If you think your spouse is financially suave, your divorce lawyer may refer you to a professional forensic accountant to track, examine, and verify the financial activity and assets of your spouse. Your spouse may not be hiding matters, but it’s essential to know the details, given the situation.
2. Do Not Let Your Emotions Dictate You
Divorce can be a wrenching experience to go through, emotionally. It has devastating effects on both the partners unmindful of whether one is at the receiving or serving end of the divorce papers.
But, like with business, you must cut out emotions because they can affect your rational thought process. Taking any hasty decision based on sentiments, be it reprisal or reconciliation, is highly ill-advised with more chances to backfire than prevail.
Try to think of divorce as the termination of a business agreement, taking a detached and objective view of the whole situation. This is where hiring a competent and mature divorce team becomes critical.
Your attorney, tax consultant, financial planner, and forensic accountant can all help you with an unbiased and dispassionate point of view. You can then prudently analyze and appraise all the settlement options and their implications.
3. Do Not Conceal Matters from Your Divorce Team
In today’s digital world, with the kind of technological tools at our disposal, it is extremely hard to conceal anything. And often, your spouse will be hiring an accomplished divorce team that is competent enough to unearth any infringement on your part.
Do not take any significant financial decisions or try to conceal any past financial dealings. Apart from being unethical and illegal, it could badly damage your credibility. Focus on building a good divorce team and trust them to protect your interests.
4. Do Not be Fixated Just on the Current Scenario
Divorce is not just about splitting up the assets and dividing the wealth. You need to plan for and factor in future costs, child support, tax implications, and alimony. Apart from the assets, it also involves the division of ongoing liabilities and preparation for future expenses and obligations.
Once again, this is an area where having a skillful financial advisor, tax planner, and trusted accountant in your divorce team will keep you in good stead. They can help you assess both the short and long-term implications and take suitable action accordingly.
5. Do Not Choose Your Attorney in Haste
While using references from friends in similar situations is not a bad idea, conducting thorough research on your own will work out better eventually. You are the best judge of your marriage and its inherent complications.
Analyze your financial situation in detail, and conduct a careful and exhaustive appraisal before selecting the attorney that is suitable for your situation.
Choosing someone only because they are inexpensive may cost you a lot more overall. A divorce attorney and the accompanying team of advisors can decide your financial fate. Taking a hasty decision while looking to cut corners can be the cause of anguish later.
A high net worth divorce may end up being a hard-fought battle, and you may need to put up the fight of your life. Having said that, an attorney who is also a reliable and proven strategist, will be more helpful to your cause than a mean streetfighter. But being tough is a key aspect to all established attorneys.
A competent divorce team with calm heads and unbiased perspectives will fight hard for you without creating unnecessary conflicts that could be detrimental to your case.
The key to fighting a high net-worth divorce case successfully is the right attorney and a competent team of advisors. A committed high net worth divorce attorney can bring on board their own experience and skills, and a team of professionals who can help obtain the best possible result for you.