While divorces may all follow specific procedures, the stakes often get raised during a high-asset divorce.
From property to business assets, coming to an equitable solution comes with challenges. As you navigate the process, avoid the following mistakes.
1. Settling too soon
After making the decision to divorce, you likely want to get it over with as soon as possible. Even couples trying to divorce amicably still feel stress and anger. That makes it easy to want to rush through the process. Doing so opens the door to losing out on critical assets, which may have long-lasting financial repercussions.
2. Ignoring taxes
Ending a marriage comes with many decisions and fine details that make a huge difference if overlooked. Taxes often fall into that category. From capital gains to changing your filing status and withdrawing funds from a retirement account, not following the many different regulations may lead to future tax liabilities. If you must provide spousal support, that also comes with its own set of laws.
3. Ditching an estate plan
While your marriage has ended, your life together has not if you have children. Wealthier couples often have already planned ahead and created an estate plan. This may include setting aside a specific amount for college or a future wedding. During the divorce, that money may become a new source of debate. If you have already set aside money, consider keeping it out of the collective assets you plan to split with your future ex.
A high-asset divorce has complex nuances, making it vital to take your time and perform due diligence.