No matter the details, getting divorced can be emotionally and financially difficult. If your divorce involves a substantial number of assets and property to be divided, your long-term economic well-being may be on the line. You might be tempted to rush to a settlement to get it over with, but this can have damaging consequences. Here are four common mistakes to avoid while going through a high-asset divorce.
1. Hiding or disguising assets
Dividing property is a necessary aspect of the divorce process. You and your spouse must disclose all assets and property, but due to the high value of your assets, you might be tempted to hide them from your spouse. Do not fall into the temptation of concealing valuables or transferring money to third parties. You will more than likely be found out, and you may face significant disadvantages throughout the rest of the case.
2. Failing to investigate
Even if you make the right choice to disclose all your assets, your spouse may not take the same route. If you suspect that there is any devious behavior, do not hesitate to investigate. Examine large expenses, tax returns, bank records or brokerage statements.
3. Overlooking tax consequences
While it might appear that the final division of assets is even and fair, you might face a larger financial liability due to taxes. Cashouts can have penalties if they are disbursed improperly. Assets you receive might come with capital gains tax burdens, especially if you receive stocks, investments or real estate.
4. Agreeing to anything and making rash decisions
Because your long-term financial stability is at stake, it is crucial that you do not make decisions on the fly or agree to any settlement. Do not make any decisions without considering the consequences and whether they are in line with your best interests. Try your best to navigate the divorce with calmness and rationality. Divorce always comes with difficulties and significant stakes, but these are often worsened in high-asset divorces. If you are concerned about protecting your interests and ensuring you have a stable financial future, contact a family law attorney for guidance.