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Avoid these common high-net worth divorce mistakes

On Behalf of | Dec 16, 2022 | Divorce

The stakes are significant in a high-asset divorce. And if you don’t know how to adequately navigate the nuances of your case, you could be leaving yourself susceptible to a poor outcome. You may be left without the financial resources that you expected, need and deserve, and your hopes for the future can be quickly dashed. You certainly don’t want that to happen.

So how can you protect your interests in a high-net worth marriage dissolution? You can start by trying to avoid these common mistakes:

  • Not creating a budget: Before heading into negotiations or litigation, you have to know your post-divorce financial needs. This will set the boundaries of your negotiations and give you direction in litigation. So, sit down and be realistic about what you need, what you want and how expensive your lifestyle is going to be once your divorce is finalized.
  • Over-simplifying alimony: Whether you’re seeking spousal support or hoping to avoid paying it, you need to understand the intricacies involved in this legal issue. Alimony isn’t required in every case, and when it’s deemed warranted, the exact amount ordered is going to depend on a number of factors. You’ll need to look closely at those factors to determine how you can best argue them to your advantage. After all, doing so may be the best way to protect your long-term financial interests.
  • Not looking for hidden assets: It can be hard to keep track of all of your property in a high-asset marriage, which is why you should approach your divorce with skepticism. It’s better to err on the side of caution and anticipate that your spouse is trying to hide assets from you rather than giving them the benefit of the doubt and then losing out on assets to which you’re otherwise entitled. So, you may want to work with a forensic accountant on this.
  • Not putting a family business under the microscope: Assets can easily be hidden in a family business, often by over-reporting losses or under-reporting income, but there can also be issues with the valuation of the business itself. This can be huge, too, given that the business may be considered marital property and it might be quite valuable. Therefore, you’ll want to ensure that you have a proper valuation of the business to protect your interests.
  • Neglecting tax implications: How your marital assets are divided can have significant tax implications. You may end up with a tax bill that’s larger than you’re willing to pay, which can start your post-divorce life out on the wrong foot. So, make sure you fully understand how you’ll be taxed before you agree to any kind of settlement.
  • Moving too quickly: We know that you probably want to get your divorce over with as quickly as possible. But if you move too quickly, you might miss key opportunities in your divorce. So, try to slow down and be diligent as you prepare your legal strategy. That way, you can move onto the next chapter of your life on the strongest footing possible.

Advocate for what you deserve

 Under New York law, you’re entitled to your fair share of the marital estate. Spousal support may also come into play in your case. But you’re unlikely to be given what you deserve unless you advocate for it. That’s why it’s in your best interests to be as thorough and as aggressive as possible when dealing with the financial issues related to your divorce.

Fortunately, you don’t have to face those matters on your own, because teams of experienced legal professionals stand ready to help you build the compelling legal arguments that you need to support your position.