Do’s and Don’ts of High Net Worth Divorce

Posted by in Divorce on Apr 26, 2017

Do’s and Don’ts of High Net Worth Divorce

Divorce is already complicated on its own, but it becomes even more complicated when it involves high net worth. This is justifiable, because assets and liabilities can affect the financial standing, earning capability, and quality of life of the spouses involved, so it is likely that they are going to act according to their best interests.

DO’S

  1. Do account all your current assets and liabilities. An error in your asset and liability documentation may make you lose assets that are rightfully yours or gain liabilities that are rightfully your partner’s.
  2. Do investigate about financial sophistications. Finance is a complicated thing, so you should investigate the assets your ex-partner’s assets, liabilities, and financial movements. Failing to know these things may put you in a disadvantage in the division of assets and liabilities.
  3. Do consider tax consequences and other new liabilities. Divorce is not just about you and your spouse dividing assets, as there will be new liabilities, such as alimony, spousal support, and tax consequences from the assets you have received.

DON’TS

  1. Don’t let emotion take over. Emotions can be destructive in the legal process, especially if they are negative, such as anger, hatred, guilt, and jealousy, because they may make you do things that can have a negative impact on the divorce agreements.
  2. Don’t sign agreements immediately. According to the website of Kirker Davis, LLP, high net worth divorce may involve a variety of issues, such as valuations of businesses and divisions of stock options. The complexities may be too stressful for you that you will sign everything immediately just to get over them. This can lead to unfair divisions and future financial problems.
  3. Don’t try to hide assets and liabilities. Firstly, hiding assets and liabilities is unethical. Secondly, getting caught of hiding these assets and liabilities may result into the loss of your credibility, which is the very thing that can easily turn around a high net worth divorce case against you.

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