Individuals in a marriage will need to work together towards a common financial goal. However, the problem with this situation is that financial trouble is one of the most common reasons most married couples decide to split. In fact, recent studies have shown that trouble with finances is the cause of at least one-third (36%) of divorce cases in the United States.
Contrary to what most people think, even the wealthy are not protected from the prospect of divorce due to financial trouble. But compared to your “usual” type of divorce, high net worth divorce is a bit more complex than usual. On top of that, this will require even more resources.
Fortunately, there are various ways of coming out on top in a high net worth divorce proceeding and getting the assets that are rightfully yours. Here’s what you need to know in this situation.
It Will Affect Your Financial Situation
Consider that when you’re diving assets, there will be various implications that impact different areas of your finances. This will usually come in the form of tax implications, and there will also be a variety of financial responsibilities that you will need to attend to in the future.
In addition to this, the more assets there are in a certain divorce, it will affect your financial condition more. For instance, if you and your spouse own various real estate properties that have been appreciating through the past few years, splitting these properties and the assets inside will trigger various large gains.
There will be situations where you will experience capital loss. If you want to offset this, start paying long-term capital gains.
You should prepare for this type of financial impact. Besides having a financial advisor who can help make timely decisions on this situation, you might also want to have a legal advisor by your side specializing in property and real estate. Fortunately, you won’t have to look far in this situation since a reputable estate planning attorney is well-versed in the division of assets and properties. Not only will this help with your financial decisions in the near future, but this is also one of the best ways of coming out on top of these proceedings.
It Will Take More Time
Another important factor to consider when it comes to dividing assets is that this will take a good deal of time. It’s best to have the mindset and already set your expectations that this will drag on for a longer time than usual.
Before you embark on the process, ensure that you have the appropriate schedule for the proceedings and the timeframe. This is especially useful since many individuals will stop with the negotiating process as soon as possible since there are more “important” matters to deal with.
This can be a big mistake since this will rob you of most of your rightful assets. Instead, think of a high net worth marriage like you’re separating a larger company: it will take time, and each element of the company will need to be accounted for. This makes patience incredibly important.
It Will Be Expensive
Keep in mind that a high net worth divorce is one of the more expensive legal proceedings. There are various complexities involved in this situation, which can make it a bit more costly than your regular divorce. Ultimately, this will be determined by the assets that are involved. At the same time, this will mean that you must hire more professionals.
Although you might have an attorney who will help you on how assets are being divided, you should have another specializing in these types of divorce. Many individuals will usually skimp through these costs. In reality, this won’t get you anywhere and will only sabotage any progress that you’ve made in these legal proceedings. That said, investing in legal professionals by your side can help have a fairer and more justifiable outcome.
You need to remember several factors when you’re in the process of a high net worth divorce. Going through a high net worth divorce can be a bit daunting and sometimes even one of the more mentally and emotionally exhausting legal processes. Still, you need to keep your cool and trust the process. Not only will this help with your situation, but this will ensure that you’re getting the most out of your assets.
If you’re not quite sure about what you have to do in this situation, you can always hire well-versed professionals to increase your chances of getting your valuable assets. In this scenario, patience will always be a virtue, especially since this takes more time than usual. Although it might be daunting, you can eventually get through it with the right professional help.