Getting a divorce is already a stressful situation. Adding complex financial matters to your divorce can add to your feelings of uncertainty about your future net worth. One of the best things you can do to protect yourself from costly mistakes in a high-net-worth divorce is to seek experienced legal counsel.
Because high-net-worth divorces involve a substantial amount of assets, they are naturally more complicated. Dividing property in a high-asset divorce requires a carefully crafted strategy. Without a plan in place, costly mistakes are more likely to occur. To protect your rights and property in a high-net-worth divorce, keep the following in mind.
Incorrectly identifying high-net-worth assets.
It can be difficult to know if an asset will be considered a community or separate property, which makes it vital to have an attorney to help you categorize it. Not correctly categorizing the type of asset could lead to an unfair settlement of assets.
Making decisions based on your emotions.
High-net-worth divorces can quickly get heated. In the event of an emotionally driven decision, you could end up agreeing to give up more property than you deserve, which can lead to long-term financial stress. Instead, think about how you would react if this were a professional setting. While you might think your choice will make your life easier at the moment, it could lead to a more time-consuming and emotionally draining fight in the future.
When handling business matters, you want to be calm, informed, and have a plan in place. In a divorce, the same logic applies. If you struggle to put your feelings aside, it’s essential to seek guidance from a skilled attorney.
Hiding your assets from your spouse’s legal team.
One of the mistakes many make in a high-asset divorce is hiding assets. While it may be tempting to hide some assets that you don’t think the other party deserves, it can backfire on you because it is considered fraud. When property is divided in a divorce, every asset must be disclosed. If it’s discovered that you are hiding property from the judge, you could be held in contempt of court or found guilty of perjury due to your attempts to conceal assets.
Not valuing your assets correctly.
Assets also need to be valued to determine their worth in order to ensure a fair division of property. Often, when individuals own luxury or high-value assets, they will seek a third-party assessor to determine the value of their assets.
Not all spouses will agree with the valuation estimate, and major disputes could arise. In this case, a judge could ultimately be put in charge of assigning a dollar value and dividing that value between the spouses.
Sometimes more than one financial assessor will be needed depending on the type of asset. For property like antiques, fine art, collectibles, and more, they will need to find someone that specializes in determining the book value of those types of assets. Conversely, to determine the worth of a business, you could need an entirely different financial expert.
Tampa High Income Divorce Attorney
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- Tampa, St Petersburg
- Land O’ Lakes
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If you are looking for a Tampa family law attorney, look to Anton Garcia Law, a 2021 SuperLawyer “Best Attorney” award winner. Our office is located near beautiful downtown Tampa, where we proudly serve clients from around the state of Florida.