Divorce is complex, but the level of intricacy may be higher when more assets are involved. If you and your spouse had assets with high values, such as businesses, stocks, trust funds or real estate that you both owned or ran, property division may be challenging. This is because the stakes in high-net-worth divorces are usually high.
Thus, it can be easier to make mistakes. Here are four high-asset divorce mistakes you should avoid:
Not negotiating with your spouse
It may help if you and your spouse can negotiate about property division. Not only are assets at stake, but also relationships, especially if children are involved. With a skilled mediator, you should make informed decisions that are fair to both parties.
Some people try to hide assets in divorce to prevent them from being subject to negotiation and division. They do this by changing the title of assets, using overseas bank and investment accounts, hiding cash, misreporting income or ‘gifting’ money to a friend.
While this may seem smart, it may get you into more trouble. Experts in divorce are aware of the strategies people use to hide assets. Therefore, they may find out soon.
Not considering taxes
During property division, you need to be informed about taxes as they play a big part in the value of the property you receive. High assets have a significant tax burden. You don’t want to end up with assets that will lose value due to taxes.
Not working with professionals
Any divorce type needs the help of professionals. Even if you and your soon-to-be ex-spouse agree to negotiate, it helps to have a team. You need a valuation expert or a skilled mediator and so on.
High-asset divorces have complicated issues. It will help to get professional guidance to find the best resolution for your case.