Many people want to settle down with the love of their life. However, marriages sometimes don’t work out. According to certain studies, the divorce rate in the United States is around 40% to 50%. People would say that the most prevalent reason couples separate is because they fail to find a middle ground when it comes to money. This is why financial trouble is the leading factor among divorces.
However, being wealthy does protect you from separation. In most cases, this can lead to high net worth divorces, which can be even more complicated than your “regular” divorce. Not only is this known for being costly, but this can also be emotionally draining for many couples.
That said, it’s only logical that we look for ways to prepare for these types of proceedings. Here’s what you’ll need to know.
It Will Take Longer
First and most importantly, a high net worth divorce will take longer than normal. You’ll need more time to prepare for the proceedings. In most cases, this situation will take far longer since you’ll need to keep in mind many assets.
Right before you start embarking on the process and making any final decisions, you’ll need to be aware of this. You should be mentally prepared for the time frame of the proceedings. Usually, individuals going through a high net worth divorce will try to stop negotiating just so the divorce is sorted out as soon as possible. However, this is a common mistake.
Although this might expedite the process by making it faster, this can rob you of any assets that rightfully belong to you. Remember: the legal process is very meticulous and detailed, and you’ll need time for it.
Think of a high net worth marriage as something similar to splitting up a large company—it will take time, and both parties need to be coordinated to ensure that everything is done smoothly. In this situation, patience is a virtue.
You’ll Have To Spend More
It goes without saying that a high net worth lawsuit has a variety of complexities. Since this involves individuals with a lot of financial power, this will cost more money in the long run, especially when you need to hire different types of professionals to gain the upper hand.
You need to engage with a divorce attorney who specializes in cases that involve high net worth. In addition to having a legal expert, you also need to keep in mind that an accountant should also be present in this type of situation.
When it comes to high net worth divorces, everything should be taken into account. Although you might have to spend more than usual in the short term, this is still necessary to gain an advantage in the divorce proceedings. At the end of the day, having professional help and supervision have a significant role in obtaining a fair outcome in this situation.
Start Listing Down Your Assets
One of the most important things you need to do right before your proceedings is to list down all the assets that are rightfully yours as soon as possible. Although this should be a common practice among divorce proceedings, a common mistake that most people make right before exiting a marriage is not listing down the assets that are rightfully theirs. Often, they’ll do it at the last minute, thus causing problems later on. Even though this is an understandable occurrence for many individuals going through emotional issues due to the divorce, maintaining your composure should be part of it.
During divorce proceedings, you will likely lose access to various documents and records. So, you want to come prepared with copies of lists, records, and documents as much as possible. This shouldn’t be a problem since this type of proceeding will give you ample time.
In addition to assets that are rightfully yours, you’ll also need to think of the assets that will eventually be inherited. You’ll need to make a list of these things as well.
It’s important to keep in mind that inheritance laws vary per state. If you’re not sure what your state’s laws are, consult with your legal advisor regarding this information.
Tax Implications
You’ll also need to be aware of the tax implications of this divorce. No matter how your assets and the assets of the other party are being divided, taxes will still come into play. Although it might seem like taxable events are unavoidable, there are ways to reduce your taxation burden through methodical and proper negotiation and planning.
Besides engaging with an experienced attorney, having a financial planner can also help guide you through this process. This is especially important for high net worth divorces that involve a large number of assets.
These are just some of the things you need to consider right before filing for a high net worth divorce. We understand that divorce is a hard process that nobody wants to experience, but a high net worth divorce can be tricky to handle and is even more difficult. No matter what the reason for your separation from your partner may be, you need to be prepared and strong enough to take the journey ahead of you. By taking the necessary steps, you will be better equipped to streamline the process and expedite it.
