Divorces can be long and messy. There are many factors that come into the situation including the couple’s feelings towards each other, their home, valuables, animals and children. Some couples are able to make it through the process painlessly while others fight tooth and nail every step of the way.
When it comes to a high-net worth divorce, couples tend to make mistakes that normally might not make much of a difference, but in their case, could result in major devastation.
1. Trying to get out as fast as possible
You and your spouse may be getting a divorce because you can no longer stand each other or one of you has fallen in love with someone else. You or your spouse might try to rush the divorce process and get it done and over with so you can move on with your lives. However, rushing through the process can result in missing steps or agreeing to terms too quickly without fully understanding what you are giving or taking away. Being present in every step can help avoid moving too quickly making decisions that you may regret later.
2. Feeling guilty
Your divorce may be the result of extramarital affairs or some other event that led to mistakes you or your spouse feel you need to make up for. You or your spouse might try to give additional assets to the other that they may not necessarily be entitled to or try to make the process easier for them. While this is a personal choice depending on your situation, consider the possible future financial consequences of making decisions based on guilt.
3. Attempting to hide assets
Being dishonest in a high-net worth divorce could be a very costly move. If you or your spouse tries to hide assets by storing funds in another family member’s account, for example, you could suffer severe consequences that may result in you losing funds and/or gaining a negative rapport in court for the duration of the case. You might think the asset is yours and you do not want your spouse to have it, but being completely transparent will help you gain favor in court where fairness in asset division is the goal.
4. Listening to others and not doing your own research
You may have friends who have been through a divorce already. They might offer advice or give details about their own experience. Each divorce case is unique so you shouldn’t necessarily take what you hear and apply it to your case. Additionally, it can be helpful to do your own research. This could mean researching and understanding your personal assets and what is most important for you to protect, or researching aspects of the case you do not fully understand. Accepting terms and offers at face value without further investigation could cost you more than you would like.
5. Hiring the wrong lawyer
Finding the right lawyer may not be simple. You would typically want to find one that can handle high-net worth cases and get you the best deal possible. Many believe that the best lawyer for a case like this must be ruthless and dirty for you to get real results. While those lawyers are out there and they do get results, that might not be the approach you want to take. Regardless, making sure your goals and values are aligned with who you hire for representation could provide the most benefit for your case.
There are many things to consider when getting a high-net worth divorce. Your assets often have more value than you think and losing any of them due to an avoidable mistake can be devastating and costly. Your future financial stability and security may rely on the results of your divorce. Being transparent, present and doing your research will be worth it in the end.
