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Avoid these 4 common mistakes in a high-asset divorce

On Behalf of | Oct 20, 2022 | High-asset Divorce |

While there is no easy divorce, the stakes are much higher when significant assets are involved. It is no longer business as usual, and even the slightest mistake can result in substantial losses.

Therefore, you need to be wary of the pitfalls to avoid and ensure you do not lose out in a high-stakes divorce.

1. Hiding or dissipating marital assets

When millions of dollars in assets and cash are involved, you may think that some of your actions will go unnoticed. For instance, you may be tempted to hide assets from the divorce court to avoid sharing them with your ex-spouse or make questionable and unnecessary transactions in the lead-up to the divorce.

However, hiding assets during divorce is against the law. You could open yourself to legal penalties for that. Additionally, you may have to repay misappropriated marital funds.

2. Being oblivious to tax implications

You may have been awarded the family home, but do you have the means to keep up with the taxes on the property? Many people are unaware of the tax obligations they may have to shoulder after property division or the tax consequences of asset transfers, especially investments, after divorce. You may end up saddled with a significant tax burden if you are not careful.

3. Being emotionally charged

Divorce proceedings can get emotional, but it is advisable to be clear-headed. Avoid acting on impulse or lashing out at your ex. It could affect other aspects of the divorce, such as the custody of the children. Some decisions may not go your way if you are perceived to be violent or not in control of your emotions.

4. Not weighing your options

Have you considered an uncontested divorce in place of litigation? Do not rush to contest your divorce before weighing the pros and cons of your decision. It is easier to settle a divorce outside court. Doing so can also preserve more of your assets to be divided.

It is beneficial to reach out for help if you have any doubts or concerns about the divorce process. The proper legal guidance will help secure your interests and ensure you get what you deserve in your divorce.