Mistakes To Avoid In Your High Net Worth Divorce
Divorce is always an extremely difficult process. However, if you or your spouse has a high net worth, divorce has an increased potential to become extremely complex. In many cases, it is even easier to make some common mistakes when going through a high net worth divorce than it is in other cases.
Unlike in other cases, the mistakes made in divorces that involve substantial and complex assets will have far-reaching consequences. Sometimes, it may even result in criminal penalties. If you are going to get a divorce and either you or your spouse has a high net worth, below are the three biggest mistakes to avoid.
Waiting Too Long to Consider the Terms of Divorce
Divorce is always a stressful process and it always has the potential to become extremely contentious. This is especially true when there are a great number of assets on the line. If feelings of resentment and frustration build up during your case, you may be tempted to rush through the process just to get it over with and move on with your life. You may even think you do not care about the consequences of these actions and say you are willing to give your spouse whatever they want.
Rushing through any divorce case just to get it over with is always a mistake. During a high net worth divorce, it has even more consequences. You must fight for your rights so you do not forfeit alimony, or end up paying an unfair amount, surrender time with your children, or give up important assets you are entitled to.
Failing to Realize Tax Implications
You are entitled to certain property under the equitable distribution laws of the state. While you may be happy to receive some of these assets, it is important to consider all implications related to them, both the good and the bad. For example, you may acquire an asset that has a significant built-in gain. That gain typically has a tax implication and if you do not consider it, you may have to pay significantly for it in the end.
In Pennsylvania, you are required to fully disclose all of your assets, as well as your liabilities. People are more likely to hide assets during a high net worth divorce though, to prevent them from being divided during the divorce process. If you hide assets, you will face serious penalties. Additionally, you will lose credibility with the court and once that happens, it is extremely difficult to get it back. People hide assets thinking they will not be found, but that is rarely the case. Your assets will be found, and hiding them will hurt you in the end.
Our Family Lawyer in Media will Help with Your High Net Worth Divorce
At Barbara Flum Stein & Associates, our Media family lawyer will help you through your high net worth divorce to ensure no mistakes are made so you obtain the full settlement you deserve. Call us today at 610-565-6100 or fill out our online form to schedule a consultation and to learn more about how we can help.