Arranging a high net worth divorce – Practical things to keep in mind
The rate of divorce in the US is 40-50%. What is the most common reason behind so many couples seeking separation? Financial issues are the primary reason as research reveals that money trouble is one of the leading factors behind more than one-third of divorces.
Being wealthy and rich doesn’t guard you against divorce or separation. Moreover, a high net worth divorce is usually more complicated, emotionally draining, and complex. Are you someone who is all set to arrange a high net worth divorce? If answered yes, there are few things that you need to keep in mind. Keep reading to know about them.
High Net Worth Divorce – What is it?
Before delving deeper into this topic, let’s know what a high net worth divorce is. High asset divorces or high net worth divorce usually include more than $1million of liquid assets. These assets can take various forms and comprise property, overseas assets, business shares, and much more. The higher are the values involved in a divorce, the greater is the complexity of the process.
Factors to keep in mind about high net worth divorces
- It takes a lot of time
The foremost thing that you should be aware of while facing a high asset divorce is that it takes time. In the majority of the cases, a high net divorce takes a longer time than a divorce that involves fewer assets and property. So, before you step on to organize a divorce, be ready for the timeframe. There are many individuals who make the mistake of putting a halt to negotiation with hopes of settling sooner. Avoid this as this can rob you of your assets.
- It is costly enough
Due to the complications involved in a high net worth divorce, it goes without mentioning that it is a costly process. While there are professionals who excel in helping CEOs with their divorce, you may need to hire them based on your assets. Rather than doing things on your own, it is recommended that you hire an attorney that specializes in high net divorce. You may even need to get the help of the services of a forensic accountant. Any attempt to skimp on these expenses will lead you to nowhere.
- It is not just your assets that are affected by a divorce
If you thought divorce is only about dividing assets, you’re wrong as there’s more to it. Divorce is something that will have a detrimental impact on all aspects of your personal finances. Divorce has tax indications and sets a base for your new monetary responsibilities. The more assets involved in a divorce, the higher will be the effect on your finances.
- Watch your expenses during the divorce proceedings
There are many who believe that higher expenses will garner a larger settlement amount. However, the logic is slightly different. The more you shell out of your pocket, your needs will appear higher in the court and this will lead to a bigger settlement amount. In fact, too much reckless spending can be viewed by the court as wasting of assets. This can have a negative impact on the case. So, you need to watch your expenses till the divorce proceedings are finalized.
So, if you’re all set to file a high net worth divorce that involves huge assets, you should get the help of an attorney. Contact family law specialists who have experience in dealing with high net worth divorces. There are lawyers and attorneys waiting to tirelessly ensure a favorable result.