All divorces can be complicated, but it is especially a risk when valuable assets are concerned. If you are ending your marriage with complex assets such as businesses, financial interests and properties, you may be in for a tricky and contentious process.
It is vital to be as thoughtful and careful as possible during a high-asset divorce. Significant assets are on the line. There are some common mistakes that people make in these situations that you should avoid at all costs.
1. Hiding or devaluing assets
If you want to protect your finances, you may attempt to disguise assets from your spouse. This is a bad idea. Any good lawyer will detect this fraudulent behavior. If you get caught, you lose credibility and impede your own interests. Resist the temptation to be deceptive.
2. Being too agreeable for a faster process
You may dread the idea of negotiating the division of property and arguing with your spouse. If you want to avoid the emotional turmoil, you may agree to essentially anything just to be done. This approach is likely to result in you giving up a significant amount of assets.
3. Failing to consider tax consequences
Do not forget about how taxes may impact certain assets in the future. While property, investments and retirement accounts may have comparable face values currently, that can change drastically later. Consider the post-tax value of assets. Additionally, keep in mind the tax rules regarding alimony.
4. Leaving joint accounts open
If you have joint credit or bank accounts, close them as soon as possible. You may still be liable for debt your spouse builds up. A vengeful person may try to deplete your money, ruin your credit or send you into bankruptcy.
5. Seeking revenge
Speaking of which, do not be the person whose goal it is to get even. Letting your anger get the best of you will only cause unnecessary arguments that will make the process longer and more expensive.