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Avoid common but critical errors in a high net worth divorce

On Behalf of | Feb 5, 2018 | Blog

Divorce is certainly not a pleasant experience, and in order to get through it, some people make decisions in haste that they later regret.

If you are facing a high-asset divorce, making a simple mistake in judgment could affect your future for a very long time. Here are four common but critical errors to avoid.

1. Taking too much advice

You and your best friend might share all kinds of personal information, including the details that brought on the breakup of your marriage. Your chief confidante might offer advice as to how you should manage your divorce. Other friends and relatives might chime in. These people may mean well, but remember that every divorce is unique. Rely on the advice and support of your attorney and other professionals connected to your case.

2. Being too trusting

You may take what your former partner and his attorney say as gospel truth with regard to marital assets, and you may be too trusting. Your soon-to-be ex may be more sophisticated financially speaking than you are, and an investigation of your marital assets may be in order. If there are any hidden assets, your attorney will bring them to light with the help of experts like forensic accountants and financial advisors, if necessary.

3. Failing to consider tax implications

You may be taxed on the distributions that come your way in the divorce settlement. You could also agree to an alimony amount without considering the taxes for which you would be responsible, and which would reduce the amount you actually receive. Work with your attorney to make sure you thoroughly understand the tax picture.

4. Being too agreeable

You may want to get out of this marriage at all costs. If so, you might be in the frame of mind to agree to almost anything your ex-partner wants. Do not succumb to temptation. Do not waive alimony or agree to any division of assets that would leave you on the short end of a divorce settlement. You are about to enter a new phase of your life: Avoid eagerness, complacency and other mistakes that might jeopardize your right to security and happiness.