There are many divorce-related issues to be addressed when a couple makes the decision to divorce. Divorcing couples may agree on some issues but not all. At times, emotions can cloud the divorce process and lead the parties to make mistakes, including financial mistakes, when navigating the divorce process. One potentially common mistake is to rush through the divorce process without carefully considering the divorce-related issues, especially those related to high asset divorces.
Many divorces must resolve property division, spousal support and child support concerns and asset protection is important. At times, however, divorcing spouses may also try to hide assets as part of a high asset divorce. It is important not to hide assets and to be thorough when evaluating a spouse’s assets. It is equally important to provide a through and accurate inventory of assets and liabilities during a high asset divorce. It will lead to a more accurate distribution of assets and divorce settlement. At times, it is also necessary to thoroughly investigate the financial claims and circumstances of the other party.
It is also important to understand, and not disregard, tax consequences when making divorce settlement determinations. Divorcing couples should keep in mind that each divorce is unique and is based on the parties involved and the needs and goals of the parties which includes high asset divorces. There are a number of additional mistakes that can be made during the oftentimes emotional high asset divorce process it is helpful to avoid in order to reach amicable solutions between the parties.
Couples proceeding through the divorce process, including those in the midst of a high asset divorce, should remember that they are making financial decisions for their future. Understanding the divorce process will help them better think clearly and strategically to prepare themselves for the future following divorce.
Source: ireport.CNN.com, “Top 10 Mistakes in High Net Worth Divorces,” Joey Battah, Jan. 10, 2014
