Divorces and the economic aspects relating to divorces are complicated and involve many issues that need to be taken into consideration. When one or both of the parties is a high net worth individual, the divorce is taken to a whole other level. Because there are significant personal and/or business assets at stake, the divorce proceedings have their own set of unique challenges. High net worth divorces must be planned for and approached in a manner befitting the unique issues that need to be addressed.
For those facing a high net worth divorce, finding a family law firm that has experience handling complex financial divorce situations is key. In addition to having an experienced attorney by your side, these tips can help:
- Assess the Lifestyle of the Marriage – Only with a complete picture and awareness of each asset and liability can your attorney effectively act to limit your exposure as part of equitable distribution. It is critical to any divorce, but especially to a high net worth divorce, to have a detailed understanding of the financial lifestyle and makeup of the marriage as well as the assets and liabilities of the parties.
- Contact Financial Experts – In conjunction with the advice of your counsel, consider contacting financial experts to value all of your assets. This can include many items such as stocks, bonds, pensions, real estate, and family businesses. When this financial evaluation is done by an expert, you and your spouse are more likely to agree that the valuation is fair.
- Don’t Settle Hastily – Divorces can be stressful and emotional, and you might feel that you want to do anything you can to finalize the divorce so you can move on. Agreeing to terms such as alimony, division of assets, and liabilities just to end your divorce can have devastating effects on you financially short and long term. Therefore, it is important that you do not act hastily, but instead allow for a thorough analysis to be taken before finalizing your divorce.
- Avoid Hiding Assets – If you are thinking about hiding assets during a divorce by transferring them to a third party, know that doing this will result in harm to your divorce case. It is important to put all assets on the table so they can be evaluated and you maintain your credibility in court.
- Consider Tax Consequences – Depending upon the type of assets or interests subject to distribution, there can be serious tax ramifications as a by-product of the distribution. You and your attorney should work closely with your accountant, or other financial professional, to work through and identify the tax implications of the assets to be distributed.
It is important to remember that a complex divorce does not have to lead to financial ruin. Each divorce is different, and a divorce attorney who has a background in high net worth divorce cases will be able to help you with your unique situation.
Being that there is so much to consider during a high net worth divorce, you will need to have a solid, experienced divorce attorney at your side to guide you and help you make the best decisions for you and your family. You can rely on our lawyers’ knowledge and reputation to secure the resolution of your high net worth divorce. To consult with a Pittsburgh divorce attorney about your options in a divorce, contact us online or by calling 412-261-4040.