The end of a marriage can be a rough time for any couple. This can be especially true for wealthy couples A high asset divorce often means taking the time to assess all personal and marital assets and property. This can be a complex process, and if a prenuptial or postnuptial agreement is not in place, it could be a lengthy property division procedure as many couples dispute over who gets what.
In many instances, these divorcing couples just want to get through the process as quickly as possible. While this is understandable, rushing property division can lead to mistakes that cost an individual big time in the short and/or long-term. Thus, it is imperative that divorcing individuals understand the common financial mistakes that could occur during a high asset divorce.
Depending on the situation, such as whether family businesses are involved, it is often advisable for divorcing individuals to consult with financial advisors and accountants. These individual could help with asset valuation and even uncover all assets and property involved in the process. Failing to take the time to understand what property is involved could result in an individual losing out on property to which he or she is entitled. Additionally, acquiring help from these professionals could help uncover whether or not a spouse is hiding assets.
By taking your time through the divorce process, mistakes can be avoided. Spouses may locate missing money, understand their tax basis, take the time to separate joint accounts and change beneficiaries, protect retirement accounts, and understand which jurisdictions apply in the matter. These matters are all key to establishing a strong foundation for post-divorce life.
While high asset divorces can get messy, just like any other divorce, they tend to be more complex as they include more assets and property. Therefore, those going through the process should take the time to understand their rights and how they could achieve a favorable and timely divorce decree.
Source: The Fiscal Times, “6 Money Mistakes to Avoid When You’re Getting a Divorce,” Kelli B. Grant, Aug. 26, 2016