What mistakes can I make in a high net worth divorce?
Anyone going through a divorce can tell you who stressful the process is. A single mistake in negotiation or litigation can leave you with a lifetime of regret, so it is crucial to make sure every step you take is defending your best interests. A divorce can cost a spouse thousands of dollars in just legal fees, but there are more than legal fees at stake in a high-asset divorce. Here are some mistakes to watch out for in just such an event:
Making major purchases during divorce
Some spouses get the idea that if they spend money on large purchases like a new boat or car, they can “hide” the money during divorce negotiations. This line of thinking can actually backfire, however. A court may look at this spending and decide to divide the new assets between each spouse.
Attempting to hide valuable assets or funds in a divorce can cause more problems for you in the long run. Hiding these assets can cause you to suffer legal consequences and inspire a judge to be aware the other spouse a larger share of the dividing assets.
Avoiding professional valuation
When it comes to negotiating over major assets like cars, homes, and even businesses, knowing the asset’s actual monetary value is vital. Without knowing your home’s appraisal value, you may miss out on thousands of dollars in assets or more. Uninformed negotiation can result in you negotiating to keep a house that is worth far less than you think it is.
Rushing to settle
You may find it challenging to wait for the divorce to resolve, but rushing through it can cost you. The first settlement offer that you receive rarely reflects the best possible one that you can obtain. Stay focused on your goal of protecting your best interests, and remain patient through the negotiation process.
Divorcing without legal representation
The biggest mistake someone can make in their divorce may be divorcing without their own attorney; resolving a divorce through mediation or as an uncontested divorce does not mean that you do not need a lawyer. Your divorce attorney can help you avoid critical mistakes while negotiating or litigating on your behalf. When an experienced attorney may be the difference between the best possible outcome in a divorce and just getting through it, make sure you have the representation you need.