Everyone makes mistakes. Unfortunately, even a minor oversight in a high-asset divorce can quickly escalate into financial ruin.
A high net worth divorce entails a significant marital estate valued at $1 million or more, often including businesses, investments, rare collections and retirement accounts. With so much at stake, it is imperative for divorcing couples to know what not to do when dividing their wealth.
Do not make these mistakes
Mayland law recognizes that couples may agree on splitting the properties they owned or acquired during marriage without the court’s intervention. On the other hand, if disputes persist, the state can make an equitable distribution or a decision they deem fair.
Considering either approach, couples must steer clear of the following mistakes to prevent economic devastation after the divorce is final:
- Unnecessary panic over the lack of a prenuptial or prenup agreement: While a prenup can protect each party’s interest in case the relationship fails, it is not a guarantee that things will be smooth. Thus, there is no point in worrying. With or without a prenup, an amicable resolution is possible if both parties commit to the process.
- Concealment of assets: While it might be tempting to hide a valuable property for leverage, spouses must consider that the other party may still uncover their misconduct through forensic efforts. When this happens, they may face penalties and risk their reputation in court.
- Inaccurate valuation: Failing to properly value items may result in an unfair division due to erroneous information. Unreliable details may eventually result in severe tax implications.
While this list is not exhaustive, it can help guide well-off couples in making well-informed decisions about their marital pot.
Do accept that lifestyle changes are inevitable
As much as several things can go wrong with substantial resources on the line, so much can also happen the way they should. Couples must embrace that their standard of living is bound to change and become more open to compromise to thrive separately in their unique ways. But suppose they commit errors despite necessary precautions. In that case, it will be wise to seek legal support. Doing so can mitigate further damage and help them look forward to their new financial future.