Considerations for a High-Net Worth Divorce
Studies have shown that financial struggles are among the most common causes of divorce. However, that doesn’t mean rich people are less likely to get divorced. And when divorce does happen in high-net worth couples, the process can become significantly more challenging.
Here are a few considerations for people to keep in mind when preparing to embark on a high-value divorce.
- Expect it to take longer: The more assets a couple has and the more diversified their portfolio, the longer the case is likely to take to resolve. Both parties should be prepared for a longer timeframe. You should not stop negotiating just because you want it to be over with—be prepared to be in it for as long as needed to get a fair settlement.
- Expect more expense: Longer divorces also cost more money. This is due to the additional legal fees you can expect to have to pay to resolve the complexities associated with a longer, higher value divorce. You may need to hire additional financial professionals to help you through the process. Often times forensic accountants and real estate appraisals are required. Do not skimp on these costs—it’s best to pay the professionals to help out, as this will help you get the best possible result. In addition, you can not prove the value of certain assets without certain experts.
- Begin listing assets immediately: As soon as you know you are going to get a divorce, you should immediately begin taking an inventory of your assets. One of the most common mistakes people make in divorces, especially high value ones, is waiting until the last minute to take a count of what they own. Getting your assets organized will allow discovery to go faster and also give you a greater ability to analyze your financial picture and set goals. You should gather important financial documents as you will need to disclose all financial documents during the divorce.
- Remember the taxes: There are going to be some tax implications to your divorce, especially in high-net worth cases. Work with a tax professional to consider some strategies for minimizing your potential tax burden.
- Get an attorney as soon as possible: The earlier you get legal representation for your case the better, so you can hit the ground running with your case.
For more information and tips about high-net worth divorce cases, contact a trusted divorce lawyer at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia LLP.