There’s a lot at stake in a high-asset divorce. And if you mishandle property division or spousal support disputes, then you could wind up in a disadvantageous financial position as you move into the next chapter of your life. You certainly don’t want that to happen, which is why it’s critical that you develop a solid divorce legal strategy that keeps asset protection in mind. While this will require proactiveness on your part to aggressively advocate for the outcome that you want, it also necessitates identification of key mistakes that are made in high-asset divorces so that you can avoid them.
And the mistakes that can be made in a high-asset divorce differ from those made in other types of divorces. That’s why we want to address some of them here. Hopefully then you’ll have a better idea of what to watch out for as you navigate your marriage dissolution and can develop a stronger divorce legal strategy that positions you for success.
Don’t make these errors in your high-asset divorce
There are a lot of mistakes that can be made in a high-asset divorce. Here are some of the most detrimental that you’ll want to be sure to avoid in your case:
- Poor asset valuation: In a high-net worth divorce, you probably have several valuable assets whose value is somewhat subjective in nature. This can become a sticking point during the property division process, with you and your spouse viewing the asset with differing levels of value. You can cut through this uncertainty by having an expert conduct a valuation of the asset in question. That said, there are several valuation methodologies. You have to choose the right one and rely upon a credible expert if you want to ensure that you get a fair shake in the division of these assets.
- Hiding assets: Sometimes spouses in high-asset divorces think that they can conceal assets for themselves to use after divorce, thereby keeping them removed from the property division process. But this is problematic in several ways. To start, it’s unfair and against the law. Also, if your spouse suspects that you’re hiding assets, then they might hire a forensic accountant to look for them. If assets are then found, you could be on the hook paying for that forensic accountant, which may be more expensive than those assets are even worth.
- Taking the wrong approach: In many high-asset divorces, individuals enter settlement negotiations with a certain level of entitlement. This is a mistake. It can create tension during negotiations, and it stall the process. So, as you prepare to enter your high-asset divorce, you should have justifications lined up that you can clearly articulate to support your requests.
- Misunderstanding the extent of the marital estate: Before heading into your divorce, you need a command of the facts of your marital estate. If you misunderstand how much your spouse has in retirement savings, for example, then you leave yourself in a difficult position to advocate for your share of those assets, which in a community property state like Texas should be half. So, be sure to secure all financial records and carefully analyze them with your attorney before heading into settlement negotiations.
Competently navigate your high-asset divorce
There are a lot of issues that you’ll have to address in a high-asset divorce. If you make an error along the way, you could put yourself at risk of losing out on several financial advantages. So, if you want to protect your interests as much as possible throughout the process, then we encourage you to continue reading up on what it takes to come out successful in a high-asset divorce and what you can do to protect your long-term interests.