Five Mistakes to Avoid in High Asset Divorce

 Posted on December 27, 2017 in High Asset Divorce

Divorcees with high-value assets follow the same laws as everyone else getting a divorce. The difference is that wealthy individuals have more at stake in terms of finances. The process of dividing up their assets is often more complicated because the assets are numerous and diverse. Whether because of miscalculation or emotion, making a mistake can cost thousands or millions of dollars. Individuals in a high asset divorce must take care to avoid these mistakes when dividing up their marital properties:

1. Hiding Assets: With the prospect of losing several valuable marital properties, a divorcee may try to protect them by purposely hiding them or failing to disclose them. Common tactics include creating hidden accounts or temporarily transferring properties to a friend. A divorce court may penalize a party who has been caught trying to deceive a spouse. The guilty party may be forced to compensate the other spouse by giving up marital assets or money.
2. Incomplete Investigation: A spouse can be held accountable for hiding assets only if the other spouse catches him or her. Failing to thoroughly search for marital assets puts a spouse at a disadvantage. The identified properties may be divided equitably, but having hidden properties means one spouse is receiving an inequitable share. If a spouse learns about the hidden assets after the divorce is completed, he or she is responsible for providing evidence of the deception.
3. Undervaluing Assets: Once spouses identify all of their marital assets, they must put an accurate value to each asset. Complex properties, such as businesses or investments, are common in high asset divorces and difficult to assess. One spouse will likely maintain complete control of the business, while the other receives equitable compensation. When assessing a business, assessors must determine both its current and future value.
4. Forgetting Tax Obligations: Not all marital properties are treated equally in terms of taxes. Some properties, such as real estate, are subject to additional taxes. After taxes are taken out, a once-equitable division of property may seem more uneven.
5. Giving in to Emotions: Rich or poor, couples are likely to feel some bitterness towards each other during a divorce. This may cause parties to make decisions based on spite, rather than what will benefit themselves. With high asset divorces, there are more opportunities to try to punish a spouse by obstructing his or her efforts to receive an equitable share of properties. Vindictive actions do not help negotiations and needlessly prolong the process.

Settling a High Asset Divorce

A divorce that includes several valuable assets requires an experienced and knowledgeable divorce attorney. A DuPage County divorce attorney at Calabrese Associates, PC, can properly identify and assess your marital properties. Schedule a consultation by calling 630-393-3111.

Source:

http://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm