A couple who has a significant amount of assets are usually considered to be high net worth individuals, and when that couple gets a divorce, their divorce is likely to be complicated for obvious reasons. High asset divorces can be more emotional, have more at stake, and can cause more stress.
Anticipating a high net worth divorce can be worrisome, and each spouse can get anxious thinking about the right moves to make. If someone finds themselves in this situation, the first thing they should do is find the right legal representation. Consulting with an experienced divorce attorney as soon as possible can be a huge benefit in anyone’s divorce case—especially a high net worth case. In addition to finding the right legal representation, we also recommend avoiding the following 3 mistakes if approaching a high asset divorce:
Explore Options Other than Litigation
When extensive assets are involved in a divorce, some people might think that their only way to resolve their divorce is by litigation. Perhaps this is because the perception is that litigation decides all divorce cases, but there are other options to consider, such as mediation or seeking a viable settlement with your spouse, that can benefit a high net worth couple.
With mediation, both parties go back and forth on a topic, such as property division, and with the assistance of the mediatory, they attempt to voluntarily agree on the final settlement. Also, unlike the traditional divorce process where the court decides economic issues, the financial matters in divorces that use mediation and reach a settlement do not become part of the public record. The mediation sessions and resolutions are private, which can be a major benefit to high net worth individuals who are worried about their personal information being exposed. Furthermore, cases that can be settled by way of a marital settlement agreement can avoid public scrutiny.
RELATED: Read these top Q&As about mediation.
Avoid Feeling a Right to the Marital Estate
It is very common for each spouse involved in a high net worth divorce to assume that they will receive more of the marital estate than the other spouse. When high net worth is involved, each spouse likely has a strong tie to the assets, or perhaps a tie to a specific lifestyle, that has them fighting for a significant part of the marital estate.
While one spouse may be the breadwinner and bring in most of the money, the other spouse might be home taking care of their family and putting their career on hold to do so. There are many situations, and each one likely carries its own strong opinions. Regardless of the situation, it is encouraged for each spouse to go into the divorce process open to conversations and different scenarios instead of being stuck with only one mindset.
Find an Attorney with the Right Experience
Lastly, and perhaps most importantly, is the spouse’s attorney. If a high net worth individual approaches their divorce case with the wrong representation, it can be detrimental to their future. It can cause one to lose assets, pay alimony or spousal support, and much more, which can affect them for years after the divorce is final. The right divorce attorney will bring their experience to the table and use that to help their client achieve the best outcome for them.
RELATED: Learn more about the right attorney for a high net worth divorce.
Divorces and the economic aspects relating to divorces are complicated and involve many issues that need to be taken into consideration. If you find yourself in a high net worth divorce situation and want to ensure you take the right route to resolve it, our attorneys who are well-versed in high net worth and complex family law matters can help. Contact us now to set up a consultation however it is most convenient for you—via telephone, video, or in person.
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